Russia’s crypto landscape has taken a notable shift as the government has abandoned its plans to establish a centralized national digital currency exchange. Instead, the focus has now shifted towards the regulation of multiple crypto trading platforms within the country. 

This strategic change aims to provide a structured framework for the creation and management of these platforms, as reported by local news agency Izvestia on May 29.

Colin Wu, renowned for his coverage of blockchain-related news as Wu Blockchain, took to Twitter to break the story. In his tweet, he shared a translated version of a report from a Russian news outlet.

Russian lawmakers have said they will no longer move forward with plans to create a state-level cryptocurrency trading platform. Focus on developing rules that would allow private companies to set up such trading platforms, overseen by Russia’s central bank, which is set to…

— Wu Blockchain (@WuBlockchain) May 29, 2023

Russia’s Shift Of Focus To Crypto Trading Regulation

Russian lawmakers have reportedly decided to scrap their plans for establishing a national cryptocurrency exchange, as disclosed by Anatoly Aksakov, a member of the State Duma. 

The initial proposal, introduced in November 2022, has been met with a lack of support from authorities, including Russia’s Ministry of Finance. Instead, the government now intends to focus on regulating multiple platforms, aiming to facilitate cross-border transactions for Russian businesses and provide alternatives to avoid potential sanctions.

In response to the potential restrictions, Russia is determined to forge ahead with the creation of new bitcoin platforms and organizations. According to Aksakov, the primary focus now lies in establishing a regulatory framework to govern these entities. 

By doing so, the government aims to maintain control over the process of creating and managing crypto platforms, ensuring compliance with legal requirements and providing a structured environment for their operation.

Russian Government’s Evolving Stance On Crypto

According to the Izvestia report, the Russian Central Bank is likely to assume a regulatory role in overseeing the operations of privately-owned cryptocurrency exchanges. While the specifics remain uncertain, this involvement suggests a step towards establishing a structured framework for the crypto industry in the country. 

The Central Bank’s potential oversight of international settlements within the regulatory ambit of Russia demonstrates a concerted effort to bring digital asset transactions under the purview of established financial regulations.

Over the years, Russian authorities have demonstrated a back-and-forth attitude toward the digital asset space. 

In early 2022, the Bank of Russia initially proposed a complete ban on crypto payments, signaling a restrictive stance. However, shortly after, the Ministry of Finance introduced a proposal for Bitcoin regulations, indicating a more nuanced approach. This pattern continued as Russian President Vladimir Putin signed a law prohibiting payments in digital assets. 

Surprisingly, the country later delved into exploring the potential of stablecoins as a means to bypass sanctions, highlighting the evolving perspectives of Russian policymakers.

-Featured image from Cryptowisser