Russia has abandoned its plan for a national cryptocurrency exchange as a result of the sanctions it faced from the international community following the Ukraine invasion. The primary objective of this exchange was to reduce the adverse effects of these sanctions. However, Russian authorities have now decided to shelve the project and instead focus on developing regulatory frameworks that would enable private companies to establish their cryptocurrency exchanges.

Anatoly Aksakov, the head of the State Duma committee on the financial market, announced this decision to local media. He added that the new approach would help businesses make cross-border settlements, reduce sanctions risks, and minimize the possibility of cyber attacks along with supporting competition.

Russian Central Bank is Planning to Implement Crypto Exchange Rules

The proposed cryptocurrency exchanges in Russia would be subject to regulation by the country’s Central Bank, and new regulations could be introduced by the bank before the year ends. Russian authorities are emphasizing compliance and have a cautious approach towards launching an exchange without established rules.

While Russia’s Ministry of Finance opposed the concept of a national cryptocurrency exchange initially, it now supports the new strategy. Russia has taken several steps to enforce regulations within the crypto market. More details about the specific crypto regulations are likely to be revealed soon.

Russian crypto companies support establishing a regulatory framework instead of having a national cryptocurrency exchange to mitigate risks, improve cybersecurity measures, and address market dominance concerns. Some have suggested limiting access to unqualified investors.

Regulations will be introduced to control access to these exchanges to ensure traders’ safety. Foreign companies operating in Russia will also need to follow the new regulations to ensure platform security and user data protection.

Russian authorities believe that regulating private entities in the crypto industry would promote competition, innovation, and user protection. Platform regulation is essential to safeguard user interests.

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