Business News Report
May 30, 2023

Russia Decides to Abandon the Development of a Government-Controlled Cryptocurrency Exchange

In Brief

Russia decides to stop the development of a state-owned cryptocurrency exchange and plans to regulate companies instead.

According to Izvestia, the country’s new focus is to allow private companies to build exchanges.

Russia Decides to Abandon the Development of the Government-Controlled Cryptocurrency Exchange

The Russian legislature dropped the idea of creating a state-owned cryptocurrency exchange, instead setting rules and regulations for existing enterprises, a Russian news outlet Izvestia wrote on Sunday.

The Russian news outlet stated that Russia’s new focus would be on allowing private companies to create crypto exchanges. Colin Wu of Wu Blockchain shared the news in a tweet early Monday morning.

According to the report, Ivan Chebeskov, Director of the Financial Policy Department of the Ministry of Finance for the Russian Federation, said, “The matter did not gain support from the Financial Policy Department of the Ministry of Finance for the Russian Federation.” Instead of this, the Department thinks of the possibility of “legally regulating the possibility of creating such sites by business.”

Aksakov, the head of the Russian lower house financial markets committee, said, “Instead of creating one national crypto exchange, it is planned to establish rules for the establishment and operation of such infrastructures.” He also said that crypto exchanges would be allowed to facilitate cross-border payments, although he didn’t specify exactly what payments and acknowledged that they would probably experience new restrictions.

According to Izvestia, the Central Bank will most likely regulate these platforms and govern international payments under the country’s regulatory framework. Due to the news, several private crypto operators within the Russian Federation were encouraged to enter the market.

“This will help minimize the risks of sanctions and cyberattacks on infrastructure and eliminate possible market monopolies,” said Oleg Ogienko of BitRiver, a cryptocurrency mining firm in Russia. Ivan Gostev, commercial director of GIS Mining, said that this policy would allow for more competitive and innovative firms to emerge.

Digital assets have been the subject of hot and cold approaches in Russia for many years. In May 2017, the Bank of Russia proposed a complete ban on crypto payments, and a month later, the Ministry of Finance submitted a proposal for Bitcoin regulations. Vladimir Putin signed a law to prohibit payments in digital assets the following year, but the country later investigated stablecoins as a way to bypass sanctions.

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About The Author

Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]

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Valeria Goncharenko
Valeria Goncharenko

Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]

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