Recent reports indicate that Russian authorities have abandoned the idea of creating a national cryptocurrency exchange. Instead, they plan to establish regulations governing the development and operation of such platforms, according to Anatoly Aksakov, the head of the State Duma committee on the financial market.
Aksakov explained that crypto exchanges often facilitate cross-border settlements for businesses, potentially subjecting them to certain restrictions. However, he remains optimistic that introducing new regulations will create opportunities for emerging organizations. The Ministry of Finance also supports this concept, emphasizing the need for comprehensive guidelines to encourage crypto adoption in the country.
It is expected that the Central Bank will take on the responsibility of regulating the operations of crypto exchanges. The details of these regulations will likely be included in the draft law on experimental legal regimes, as mentioned by the deputy. Furthermore, the Ministry of Finance reportedly advocates for a legal framework that enables other businesses to create cryptocurrency platforms, rather than establishing a new national crypto exchange.
This decision to forgo a national exchange in favor of regulated operations has been well-received by market participants. Oleg Ogiyenko, the director for government relations at BitRiver, highlighted that this approach will reduce risks associated with sanctions and cyber attacks on infrastructure, as well as address concerns about market dominance. Additionally, it has been proposed that special requirements be introduced for foreign crypto exchanges seeking to operate within the Russian Federation, primarily focusing on ensuring the security and confidentiality of information related to Russian clients.
As the 9th largest country by population shifts toward regulatory frameworks for crypto platforms, the broader crypto community applauds the positive stance taken by the nation. In response to this news, the price of Bitcoin rose by 2.02% in the past 24 hours, compared to a 3.62% increase seen over the last week. At the time of writing, BTC is trading at $27,810.13.
With cryptocurrency regulation front and center in Russia’s financial markets, there are both advantages and challenges to consider. The proposed legal framework and regulatory requirements can encourage innovation and adoption, while simultaneously addressing concerns about market dominance and security risks. However, it’s essential for investors to conduct thorough market research and exercise caution, as personal financial losses cannot be attributed to the author or the publication’s opinions.
Source: Coingape
