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Russia plans state-backed crypto exchanges amid challenges

GrafaGrafa2024/08/26 06:55
By:Mahathir Bayena

The Russian government is advancing plans to establish state-backed cryptocurrency exchanges, according to recent reports from local news outlet Kommersant.

This initiative aims to strengthen the country’s control over digital financial assets and facilitate international trade, with a particular focus on stablecoins.

Despite these plans, the Russian government faces significant challenges.

One of the proposed exchanges might be located at the St. Petersburg Currency Exchange (SPCEX), though SPCEX has denied any involvement in crypto services.

Another exchange could be based in Moscow, potentially through the Moscow Exchange or under an experimental legal framework.

However, the Ministry of Finance and the Central Bank of Russia have not yet reached a consensus on the approach.

The primary objective of these exchanges is to regulate digital assets more effectively and support foreign economic activities.

The new platforms will concentrate on stablecoins, particularly those linked to the Chinese yuan and BRICS currencies.

This aligns with recent legislation signed by President Putin that regulates cryptocurrencies and mining in Russia.

Access to these exchanges will reportedly be restricted to large corporations.

Despite the ambitious plans, experts have raised concerns about the feasibility of the exchanges.

BitRiver’s Deputy General Director for Communications, Oleg Ogienko, highlighted technological and legal issues related to the integration of stablecoins into Russia’s financial system.

Additionally, international sanctions pose a significant obstacle.

Mikhail Uspensky from the Russian State Duma’s expert council on cryptocurrency regulation warned that transactions on Russian exchanges could be flagged as suspicious, complicating the use of digital currencies globally.

Nikita Vaseev, founder of TerraCrypto, also doubts the project's success, suggesting that most market participants prefer established international exchanges over new, state-backed platforms.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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