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Russian government announces the establishment of a national crypto exchange

The bill would create a Russian platform for crypto sales, but local miners would be able to use foreign platforms as well

Shashank Bhardwaj
Published: Nov 25, 2022 12:18:54 PM IST
Updated: Nov 25, 2022 12:38:10 PM IST

Russian government announces the establishment of a national crypto exchangeImage: Shutterstock


Sergei Altukhov, a Russian lawmaker, confirmed that the lower chamber is working on a draft amendment to establish a national crypto exchange. On November 23, it was reported that members of the Russian parliament's lower chamber, the Duma, were in talks with market stakeholders about amending the country's existing crypto legislation 'On digital financial assets.'

Representatives from the Ministry of Finance and the Central Bank - industry regulators - were not present, according to one of the interlocutors. At first a document will be prepared. This document will take into account the market's position before submitting it for discussion to the government and the Bank of Russia. 

Altukhov said, "It makes no sense to pretend that cryptocurrencies do not exist, but the problem is that it circulates in a large stream outside of government regulation…These are billions of rubles of lost budget revenues in the form of taxes…And this division, which will work within the framework of a respected organization with great traditions, accustomed to actively interacting with the central bank, in my opinion, will best of all cope with the task of carrying out operations with cryptocurrency."

Earlier in June this year, Altukhov hinted that Russia might launch a crypto platform based on Moscow Exchange standards. He also believes that such a trading venue should exist only if the central bank closely monitors it. Furthermore, a bill to legalise crypto mining and the sale of mined crypto was introduced to the Duma earlier this month.

The bill would create a Russian platform for crypto sales. However, local miners would be able to use foreign platforms as well. Transactions in the latter case would be exempt from Russian currency controls and regulations, but they would have to be reported to the Russian tax service. Elvira Nabiullina, Governor of Russia's Central Bank (CBR), reiterated her country's hardline stance on crypto assets on November 10. 
 
She said, "Regarding crypto, we are in favor of the development of digital financial assets, and the digitalization of finance…But digital financial assets are not limited to crypto, to private cryptocurrencies. We have not changed our position that private cryptocurrencies - for which it is not clear who is responsible, or how responsible, which are opaque and carry high risks of volatility - should not be used in settlements."

Shashank is founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist.

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