The Russian government is considering the creation of legal crypto exchanges in the country as part of its shift towards embracing cryptoassets. The Minister of Finance, Anton Siluanov, has had discussions with the Central Bank about this proposal, although a concrete solution has not yet been reached. Siluanov mentioned that legislation for the creation of these exchanges may be ready for the fall session of the State Duma. Currently, existing Russian crypto exchanges operate in a regulatory grey area as they have no legal status and are not regulated by any governmental body in Russia.
Despite the lack of regulation, recent legislative efforts in Russia have made significant progress in terms of crypto regulation. President Vladimir Putin has ordered the acceleration of regulation efforts, resulting in the fast-tracking of laws governing crypto mining and the use of crypto in cross-border trade, set to come into force on September 1. However, the Central Bank and Minister of Finance have been at odds over crypto regulation, with the former being more skeptical while the latter favors a more progressive approach. This disagreement has led to various policy issues, including where Russian miners and trade firms will be allowed to sell the crypto they generate.
The Central Bank has previously stated its preference for Russian firms to sell their coins on overseas platforms to avoid money laundering and potential sanctions from Western governments. However, some politicians have proposed the creation of Russian government-backed crypto exchanges as an alternative. Both the Moscow and St. Petersburg exchanges have shown interest in trading crypto, and there have been suggestions of allowing qualified investors access to state-run exchanges. These potential solutions could provide Russian firms with a way to deal with overseas banks despite the Central Bank’s opposition.
Russian media outlets have reported that regional banks in the country have stopped conducting business with Moscow due to concerns about secondary Western sanctions, indicating the impact of geopolitical factors on the financial sector. The majority of Russian industrial miners focus on mining Bitcoin, with smaller groups mining altcoins such as Litecoin (LTC). The ongoing discussions and disagreements between key government officials and regulatory bodies highlight the complexity of developing a comprehensive regulatory framework for the crypto industry in Russia. Despite differing views on the matter, there is a push towards finding solutions that balance the interests of various stakeholders and comply with international standards.
