Wednesday, November 30, 2022
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Russia Creates Government-Controlled Cryptocurrency Exchange

Russian lawmakers are drafting a law that would allow the creation of a “national cryptocurrency exchange“, revealed the local media. Currencies are now circulating outside government oversight, and the Russian state is losing billions of rubles in budget revenue, a participant in the effort pointed out.

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 set up a Russian cryptocurrency exchange. MPs discussed the initiative with industry representatives in mid-November, Russia’s leading business newspaper Vedomosti reported, citing two informed sources.

Lawmakers plan to prepare a draft taking into account the opinions of market participants and then send it to the government and the Central Bank of Russia, the publication revealed. Representatives of the monetary authority and the finance ministry were not present at the meeting, the sources noted.

There are plans to make the necessary changes to the National Digital Financial Assets Act, which came into effect in January 2021. It remains the main legislation governing the country’s crypto space, albeit only partially. .

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

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

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

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

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

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