Russia Abandons Plans for State-Run Crypto Exchange, Puts Focus on Regulating Centralized Platforms

Russia is reportedly giving up on plans to launch a state-owned crypto exchange and is instead expected to regulate private ones.

According to a new Izvestia report, Russia’s Ministry of Finance rejected the idea of establishing a national crypto exchange, after the idea was discussed late last year.

Says Ivan Chebeskov, director of the financial policy department of the Ministry of Finance of the Russian Federation,“The Ministry of Finance did not support the establishment of one national crypto-exchange, rather there was an idea to legally regulate the possibility of creating such sites by business.”

Anatoly Aksakov, head of the Russian lower house committee on financial markets, also confirms to Izvestia the new direction.

Says Aksakov,“The authorities abandoned the idea of creating a national crypto exchange. Instead, most likely, rules will be established for the establishment and operation of such structures.”

Aksakov says that the exchanges will assist businesses in making cross-border settlements and will likely face new restrictions, according to the report, which does not name specific exchanges.

The Central Bank is expected to play a key role in the regulation of crypto.

Says Aksakov,“The Central Bank will probably regulate the work of crypto exchanges. And the rules will be written in the draft law on experimental legal regimes.”

According to Izvestia, crypto industry leaders are supporting the new development, including Oleg Ogiyenko, director of government relations for BitRiver, one of the largest mining firms in Russia.

Says Ogiyenko,“This will help minimize the risks of imposing sanctions, cyber attacks on infrastructure, and also eliminate cases of abuse of a dominant position in the market.”