Russian Government cancels plan for national cryptocurrency exchange

The Russian government has changed its plans regarding the creation of a national cryptocurrency exchange and will instead write regulations for multiple crypto exchanges, according to a local news source.

Anatoly Aksakov, a member of one of the chambers of the Russian parliament, spoke to the news outlet Izvestia about the shift in plans.

These exchanges will then be used for cross-border settlements, including bypassing sanctions restrictions, which may lead to new restrictions being introduced against them. However, as long as these new organizations comply with the rules, they will be allowed to appear, according to the news source.

Aksakov told Izvestia that Russia’s central bank would probably regulate the exchanges.

This decision comes just days after First Deputy Chairman of the Bank of Russia Ksenia Yudaeva stated that crypto assets have the power to “infect” the Russian economy, according to the domestic news agency Interfax.

However, she also acknowledged that it was “necessary” for Russian firms to “use cryptocurrencies in cross-border settlements.”

She insisted, however, that this be done in a way that “does not lead to the spread [of crypto] throughout the Russian financial system.”

From the beginning

Russian lawmakers came up with a plan in November of last year, and members of the State Duma have “begun to develop a draft amendment” that involves creating “a national crypto exchange in Russia,” according to media outlet Vedomosti.

Aksakov had also called for the central bank to develop a crypto exchange, according to news agency Interfax.

At the time, the central bank had opposed crypto adoption and wanted a total ban, though it has since softened its stance.

The Russian government and its central bank reached an agreement last year to regulate crypto, in part by licensing crypto firms, according to a statement.

Russian lawmakers have said that they are making progress on crypto regulation, with two bills reportedly ready for adoption as early as June.