Russia plans to launch 2 crypto exchanges for foreign trade

Russia is set to launch two major cryptocurrency exchanges, one in Moscow and another in St. Petersburg, as part of its strategy to enhance foreign economic activity (FEA). 

This initiative aims to integrate digital assets into the Russian economy, focusing on the creation and use of stablecoins pegged to the Chinese yuan and the BRICS currency basket. 

The move aligns with Russia’s broader goal of fostering economic cooperation among the BRICS nations—Brazil, Russia, India, China, and South Africa—while advancing its efforts to reduce reliance on the US dollar.

One of the planned exchanges will likely utilise the infrastructure of the St. Petersburg Currency Exchange (SPCE) to support international financial activities. 

The Moscow-based exchange may either expand upon the current Moscow Exchange setup or be developed as a new entity within a controlled legal environment. 

The emphasis on stablecoins indicates Russia’s intent to develop a more resilient financial system that reduces dependency on traditional currencies like the US dollar.

Despite these ambitions, several challenges could impede the rollout of Russia’s crypto exchange project. 

Technological hurdles, particularly the integration of stablecoins into Russia’s blockchain infrastructure, pose significant risks. 

Stablecoins, while similar to cryptocurrencies, could face issues related to convertibility, liquidity, and security, complicating their adoption within Russia’s financial framework.

Regulatory obstacles also loom large. 

Russia’s Federal Law No. 259 governs digital assets but does not explicitly address the establishment or regulation of cryptocurrency exchanges. 

The Experimental Legal Regime (EPR) could serve as a legal basis for these exchanges, but it remains untested in this context.

The rollout of these exchanges is expected to be gradual, initially limiting access to subsidiaries of major exporters and importers. 

Small and medium-sized enterprises, along with individual users, are unlikely to have unrestricted access in the early stages. 

Concerns about sanctions and the transparency of blockchain transactions could also present significant risks, potentially deterring widespread use.

Scepticism about the appeal of these domestic platforms remains. 

Industry experts, like Nikita Vassev, founder of TerraCrypto, suggest that unless no other options are available, most users might prefer established, globally recognised trading platforms over these new Russian exchanges.