Russian Halts State-Backed Crypto Exchange Project, Issues New Crypto Rules

The latest reports revealed that the Russian government had terminated its plans to create a state-owned digital currency exchange. Instead, they have decided to enact new crypto rules to guide and improve cross-border payments and other use cases of crypto.

According to the news, the Russian authority abruptly announced its decision to forgo the plans to create a crypto exchange owned by states. On the contrary, it has decided to back private investor groups.

In addition, the authority has also shifted its focus towards enhancing smooth and seamless transactions across nations and other use cases of crypto assets. Previously, the government was heavily criticized for its mixed signals to crypto assets.

However, in light of the new development, people’s opinions about the government might improve. This is because it marks a massive milestone in the progression of crypto adoption in the country.

Russian To Create Rules To Support Private Exchanges

According to the country’s lawmakers, there is no need to create state-backed crypto trading platforms anymore. Instead, they would introduce an efficient regulatory framework to regulate and support private crypto exchanges.

In addition, the country also plans to create a broader regulatory template under the Central bank’s supervision.

The chief of the Fisca Market Committee, Anatoly Aksalov, claimed that the private platforms would go a long way in helping the country to promote cross-border payments which would be subjected to some regulations.

In addition, he admitted that it is far better to tame and control many private exchanges by creating rules that would protect investors and encourage businesses than to make a national exchange.

In a recent interview, the Financial Policy Director of the Russian Finance Ministry, Ivan Chesbeskov, shed more light on the government’s decision. He said that the Ministry is against creating one national crypto exchange platform.

He continued that the Ministry has, however, helped private firms already in the business to operate legally in the territory via the creation of a crypto regulatory framework that is business-friendly.

According to the reports, crypto experts consider the new development a great tiding for the growth of the crypto industry in the region. The CEO of BitRiver, Olieg Ogienko, said the move would buffer risks of cyber attacks and sanctions on crypto platforms.

Russian Embraces Crypto Adoption

In addition, he said it would help eliminate monopolies in the country. Furthermore, Ivan Gostev, an executive at GIS Mining firm, stated that the new development would encourage new innovative and competitive startups to thrive in the country.

For years, the Russian government has been indecisive of its stance on regulating the crypto industry. For instance, the government has been expressing its wish to have total control over the financial sector in its territory.

In 2022, the country’s Central Bank announced the government plans to outrightly ban the use of Bitcoin as a payment means. However, the ban was scrapped after the Finance Ministry proposed a crypto regulation deal.

Nonetheless, President Vladimir Putin later approved a law prohibiting crypto asset payment based on the belief that it poses a risk and can sabotage the country’s economy.

Additionally, the heavy sanctions imposed on Russia by the UN for invading Ukraine forced the country to explore the use of stablecoins as a remedy to bypass fiscal restrictions. Furthermore, the new development to back private exchanges would make the country a crypto-friendly environment.

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