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Russia is preparing to create a state-controlled cryptocurrency exchange

Russia Prepares to Create Government-Controlled Crypto Exchange

Lawmakers in Russia are drafting a bill that would allow the creation of a “national cryptocurrency exchange,” local media reported. The coins are now circulating outside state control, and the Russian state is losing billions of rubles in budget revenues, one participant in the effort pointed out.

Legislators want Russia to have its own cryptocurrency exchange

Deputies of the State Duma, the lower house of the Russian parliament, are working on a legal framework that will allow the Moscow authorities to create a Russian crypto exchange. Deputies discussed the initiative with industry representatives in mid-November, Vedomosti, Russia’s leading business newspaper, reported citing two people familiar with the matter.

Legislators plan to prepare a draft taking into account the opinions of market participants, and then submit it to the government and the Central Bank of Russia, the publication reported. Sources note that representatives of the monetary administration and the Ministry of Finance were not present at the meeting.

It is planned to make the necessary amendments to the country’s law “On Digital Financial Assets”, which came into force in January 2021. It is still the main piece of legislation governing the country’s crypto space, albeit partially.

Other changes proposed last week aim to legalize mining while banning the circulation, exchange, and inappropriate advertising of cryptocurrencies in Russia, with the exception of special “experimental legal regimes” that allow them to be used in import payments.

The news that work is already underway to create a legal framework for the Russian crypto exchange was confirmed to Vedomosti by Sergey Altukhov, a member of the parliamentary committee on economic policy from the ruling United Russia party. Commenting on the situation, the deputy stressed:

It makes no sense to say that cryptocurrencies do not exist, but the problem is that they circulate mostly outside of government regulation.

According to Altukhov, everything rests on billions of rubles of lost budget revenues from taxes that the Russian Federation could collect. He stressed that it is necessary to create conditions for the legalization of cryptocurrencies and adjust the “rules of the game” so that they do not contradict the positions of the executive branch and the central bank.

One of the sources also noted that the future exchange is not seen as a platform that will facilitate the spread of cryptocurrencies or their use as a means of payment in Russia, but rather as a place where Russians will be able to declare and convert their digital holdings into fiat. In his opinion, at least one such website should be created under Russian jurisdiction in order to prevent possible foreign restrictions and security risks associated with storing data abroad.

Tags in this story

amendments, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, deputies, CFA, Digital assets, digital financial assets, bill, Exchange, Law, legislators, Legislation, parliament, proposal, Regulation, restrictions, Russia, Russian, Sanctions, State Duma

Do you think Russia will be able to create its own cryptocurrency exchange? Tell us in the comments section below.

Lubomir Tasev

Lubomir Tasev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is what I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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