Russia Shifts Strategy, Abandons State-Run Crypto Exchange for Cross-Border Transactions

Russia has reportedly abandoned its plans to create a state-run cryptocurrency exchange and is now considering the use of existing cryptocurrency exchanges to facilitate cross-border transactions. Anatoly Aksakov, the head of the State Duma committee on financial markets, confirmed this new approach. Earlier reports had indicated that Russia was planning to establish its own national crypto exchange, but it seems those plans have been set aside. Instead, the country will now work towards developing a framework that supports cryptocurrency exchanges and enables them to be used for settlements in cross-border transactions.

Adoption of Framework for Cryptocurrency Regulation

The decision to explore the use of cryptocurrency exchanges for cross-border transactions comes after Russia’s Ministry of Finance expressed its opposition to launching a single national digital assets exchange. The ministry believes that comprehensive regulation of cryptocurrencies is essential and supports the idea of adopting a framework that allows for the proper use of existing crypto exchanges in facilitating cross-border settlements. This shift in strategy marks a departure from Russia’s previous intention to establish a state-run crypto exchange. In September 2022, the Bank of Russia acknowledged that in the current geopolitical climate, cross-border payments using cryptocurrencies are unavoidable. Deputy Finance Minister Alexei Moiseev, in an interview with Russia-24 TV, stressed the need to establish legitimate domestic crypto services in Russia. He noted that some Russians currently rely on foreign platforms for crypto wallets, emphasizing the importance of supporting local services to ensure regulatory oversight by the central bank. Moiseev’s comments were followed by the Bank of Russia’s announcement that they still oppose legalizing crypto payments within the country, despite approving cross-border transactions.

Finance Minister Anton Siluanov had previously mentioned the goal of incorporating cryptocurrencies into a new payment system. However, the latest reports suggest that the focus now is on developing a regulatory framework to govern the use of crypto exchanges for cross-border transactions.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only. 

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