Russia Working on Law to Establish National Cryptocurrency Exchange

This draft amendment will take into account the market's position before submitting it for discussion to the government.

Written by Shomik Sen Bhattacharjee, Edited by Richa Sharma | Updated: 25 November 2022 15:42 IST

Russia Working on Law to Establish National Cryptocurrency Exchange

Photo Credit: Unsplash/ Mohd Azrin

The bill would create a Russian platform for crypto sales

Highlights

The draft would need further approval moving forwards
Russia seeks to bring cryptocurrencies under state control
Stablecoin usage in Russia has been rising constantly in 2022

Russian lawmakers are working on a draft amendment bill enabling the country to launch a national crypto exchange. As per a report by a local media outlet, lawmakers and market participants had meetings in mid-November to discuss what changes would be required to the law to enable the creation of a national exchange for cryptocurrencies, according to a source close to the State Duma — the lower chamber of the Russian parliament, and the information was later confirmed by a participant in the meetings. The amendments will first be presented to the Russian government and the central bank.

According to a report by Russian media outlet Vedomosti, the legislators want a draft document that considers the market players' position before submitting it to the higher authorities. With this plan, Russia seeks to bring cryptocurrencies under state control.

A member of the Committee on Economic Policy, Sergei Altukhov, said, "It makes no sense to say that cryptocurrencies do not exist, but the problem is that it circulates in a large flow outside state regulation." Althukov added that there was a need to create conditions that would make cryptocurrencies legal in the country and “regulate the rules of the game.”

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The Russian government has been planning and establishing legal specifications for international cryptocurrency transactions for months in anticipation. However, the government of the Russian Federation itself has been pushing for the digital ruble over private cryptocurrencies.

With the new draft framework, legal rules will oversee the use of digital assets in Russia. Reports last month said that direct exchanges are taking place on Russian streets to convert crypto into fiat amid a cash shortage.

It turns out that stablecoins, despite the EU's attempts to limit Russian access to cryptocurrencies, for many remain a real substitute for the currency. Russian citizens are showing interest in the new financial instrument and, exchange offices have appeared on the streets of Russian cities where transactions using digital assets can be carried out.

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With limits imposed on bank withdrawals, citizens have resorted to alternative methods to meet the demand.

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