Russia Prepares to Create Government-Controlled Crypto Exchange – Exchanges Bitcoin News

Lawmakers in Russia are drafting legislation that would allow the creation of a “national cryptocurrency exchange,” local media have revealed. Coins are now circulating outside of government oversight and the Russian state is losing billions of rubles in budget revenue, one of those involved in the effort said.

Lawmakers want Russia to have its own cryptocurrency exchange

Members of the State Duma, the lower house of the Russian parliament, are working on a legal framework that would allow authorities in Moscow to establish a Russian crypto exchange. Deputies discussed the initiative with industry representatives in mid-November, leading Russian business daily Vedomosti reported, citing two knowledgeable sources.

Lawmakers plan to prepare a draft, taking into account the opinions of market participants, and then submit it to the government and the Central Bank of Russia, the publication revealed. The meeting was not attended by representatives of the monetary authorities and the Ministry of Finance, the sources note.

The plan is to introduce the necessary amendments to the country’s Digital Financial Assets Act, which came into force in January 2021. This is still the main piece of legislation regulating the country’s crypto space, albeit only partially.

Other changes proposed last week aim to legalize mining while banning the circulation, exchange and non-targeted advertising of cryptocurrencies in Russia, except for special “experimental legal regimes” allowing their use in payments for imports.

The news that work is already underway to create a legal basis for a Russian crypto exchange was confirmed to Vedomosti by Sergey Altukhov, a member of the parliamentary committee on economic policy from the ruling United Russia party. Commenting on the topic, the deputy insisted:

It makes no sense to claim that cryptocurrencies don’t exist, but the problem is that they circulate largely outside of government regulation.

According to Altukhov, it all boils down to billions of rubles of lost budget revenue from taxes that the Russian Federation could collect. He emphasized that it is necessary to create conditions for the legalization of cryptocurrencies and adjust the “rules of the game” so that they do not contradict the positions of the executive power and the central bank.

One of the sources also noted that the future exchange is not seen as a platform that will facilitate the distribution of cryptocurrencies or their use as a means of payment in Russia, but rather as a place where Russians will be able to declare and convert their digital holdings into fiat. According to him, at least one such website should be established under Russian jurisdiction to prevent potential foreign restrictions and security risks arising from storing data abroad.

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amendments, crypto, crypto exchange, cryptocurrencies, cryptocurrency, MPs, DFA, digital assets, digital financial assets, draft, exchange, law, legislators, legislation, parliament, proposal, regulations, restrictions, Russia, Russian, sanctions, State Duma

Do you think Russia will be able to create its own cryptocurrency exchange? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tasev is a tech journalist from Eastern Europe who likes the Hitchens quote: “Being a writer is what I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration .

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