[NEWS] Russia abandons plans to establish state-run cryptocurrency, will enact new regulations

It has been revealed that the Russian government has scrapped plans to establish a state-run cryptocurrency exchange. Local news agency Izvestia reported on the 29th.

Chairman of the State Duma's Financial Markets Committee Anatoly Aksakov told the paper that after announcing plans to create a state-run cryptocurrency exchange in November last year, Russian lawmakers have abandoned the idea.

Meanwhile, instead of canceling the plan to establish a state-run cryptocurrency exchange, Aksakov said, "We may introduce regulations on cryptocurrency exchanges, as they help companies make cross-border payments." It appears that instead of a single state-run cryptocurrency exchange, new regulations will be enacted to enable supervision of cryptocurrency exchanges.

Aksakov told Izvestia, "The Ministry of Finance is also in favor of the creation of an organization to oversee cryptocurrency exchanges. Market participants are convinced that this new mechanism will help reduce the risk of sanctions and the possibility of cyber attacks, and also support competition."

Going forward, cryptocurrency exchanges offering services in Russia will operate in accordance with the new regulations. The aim is to create an environment in which it is easier for companies to process international payments.

Aksakov also suggested that the Central Bank of Russia may oversee cryptocurrency exchanges.

Deputy Governor of the Bank of Russia Alexey Guznov said that cryptocurrency exchanges would function as an organization to coordinate interactions between exporters and importers in facilitating international payments.

Although Russian cryptocurrency-related companies were opposed to the creation of a national cryptocurrency exchange, they seem to be positive about the creation of a new regulatory framework.

Oleg Ogienko, head of compliance at mining company BitRiver, welcomed the formulation of the regulations, saying that "it will be possible to reduce the risks of sanctions and cyber attacks."

However, he also warned that in the early stages, "it will be necessary to limit unqualified investors on the platform."

Reference: Izvestia
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