In a significant policy shift, Russia has shelved the idea of establishing a unified national cryptocurrency exchange. Instead, the focus is now on regulating an array of crypto trading platforms across the nation.

In a report by local news agency Izvestia on May 29th, State Duma member Anatoly Aksakov revealed that the initial plan unveiled in November 2022 had been abandoned. The man cited the Russian Ministry of Finance as one of the authorities that didn’t back the national crypto exchange initiative.

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The head of the Duma’s financial markets committee, Anatoly Aksakov, pointed out that crypto exchanges could help Russian businesses conduct cross-border transactions and evade sanctions. However, he noted the likelihood of facing constraints against such platforms.

To circumnavigate these, according to Aksakov, Russia would continue to establish new crypto platforms and institutions while emphasizing the need for regulation.

Interestingly, several prominent Russian crypto firms had opposed the national crypto exchange idea, advocating for a regulatory structure for such organizations instead.

BitRiver compliance executive Oleg Ogienko believes that a new regulatory mechanism would mitigate the risks of sanctions, cyberattacks on infrastructure, and issues arising from market dominance. He further suggested that crypto exchanges should initially limit access to unqualified investors on their platforms. 

Russia’s decision to shift from national crypto exchange to regulating multiple companies reflects the country’s evolving strategy in the dynamic landscape of digital assets. It underscores the country’s aim to harness the potential of cryptocurrencies, mitigate risks, and keep in step with global trends in the crypto market.

In other Russia-related news, a Russian bank Moscow Credit Bank became the first in the country to issue an on-chain bank guarantee denominated in Chinese Yuan.