The Russian government is considering the creation of legal crypto exchanges in the country, as part of its shift towards embracing cryptoassets. Current Russian crypto exchanges operate in a regulatory grey zone, lacking legal status and oversight by any governmental body. Minister of Finance Anton Siluanov and Central Bank Governor Elvira Nabiullina, close allies of President Vladimir Putin, have been at odds over crypto regulation. While Nabiullina is a crypto-skeptic, Siluanov advocates for a more progressive approach to regulation. Recent legislative efforts have marked significant progress in regulating crypto in Russia.
President Vladimir Putin recently ordered the acceleration of regulation efforts related to crypto mining in Russia and the use of crypto in cross-border trade. Putin signed off on laws governing these areas, set to come into force on September 1. However, the Central Bank opposes allowing miners and trade firms to introduce crypto into the Russian economy, favoring the sale of coins on overseas platforms. Critics argue that this approach could lead to money laundering and potential sanctions on exchanges dealing with Russian mining pools. Some politicians propose the establishment of government-backed crypto exchanges to provide an alternative platform for Russian firms.
Russian industrial miners focus primarily on Bitcoin, with over 90% of them mining this cryptocurrency. However, smaller groups of miners prefer mining altcoins like Litecoin. In response to fears of secondary Western sanctions causing delays and difficulties in financial transactions, several regional banks in Russia have ceased doing business with Moscow. Lawmakers have suggested granting qualified investors access to state-run crypto exchanges, a plan previously dismissed by the Central Bank. Despite the differences in opinion between Siluanov and Nabiullina, the government aims to finalize crypto regulation and address issues related to crypto exchanges and coin distribution in the country.
