TL; DR Breakdown
- Crypto exchanges that dominate the market, like Binance and Bitfinex, have shown they are not concerned about forthcoming crypto laws in Russia.
- The Russian government’s crypto regulatory road map reveals stringent rules in the future.
In recent weeks, the Russian press has polled prominent crypto exchanges. Following the study, they indicated that these exchanges are not concerned about forthcoming strict crypto rules.
Russia’s stand on cryptocurrencies
In recent months, there has been a global cryptocurrency crackdown by governments worldwide. These authorities are afraid that privately run and highly volatile digital currencies may jeopardize their power over financial and monetary systems.
In January, the Russian central bank proposed banning cryptocurrency usage and mining on their territory. The ban was motivated by fears for financial stability, consumer safety, and monetary policy sovereignty.
The Russian authorities prepared a “road map” that calls for cryptocurrency limitations towards the end of January. However, as called for by the central bank, the government is not willing to implement a complete ban on trading and mining.
In the end, politicians opted for a new approach and proposed restricting cryptocurrency trading and energy-intensive mining on Russian soil because of worries it might lead to financial instability.
Deputy Prime Minister Dmitry Chernyshenko allegedly signed the reported proposed counter-plan. However, the bank’s hardline approach has placed it at odds with most other government bodies, including the Finance Ministry, which prefers regulation to prohibition.
Crypto exchanges ready to set up shop in Russia
Following the crypto regulation rollercoaster in Russia, Kommersant spoke with some of the world’s largest digital asset exchanges. These crypto exchanges are not challenging the prospect of being required to operate a permanent presence in Russia to continue to serve its customers.
The government’s strategy to regulate the country’s crypto space includes having foreign-based platforms get permanent residency in Russia. The roadmap also contains rules regarding anti-money laundering and several other items. Cryptocurrency exchanges are obligated to share transaction data with Russia’s financial regulator, Rosfinmonitoring.
According to Business daily, Binance stated it is prepared to establish a branch or even create a legal entity in Russia. Huobi, another significant cryptocurrency trading platform, said it wants a “constructive and open dialogue” with Russian regulators.
In the medium term, Crypto exchange AAX said it has no immediate plans to open a Russian office; however, it may begin working in this direction if the legislation is passed. The exchange caters to around 500,000 Russian citizens.
The crypto market has a lot of potential in Russia. The Outcome of Russia’s last position on cryptocurrency rules will significantly influence the industry’s development. Meanwhile, cryptocurrency exchanges are prepared to follow Russia’s established rules.