Russian lawmakers devise plan to create a state-run crypto exchange

Russian lawmakers devise plan to create a state-run crypto exchange

By Charles Thuo - min read

Russian lawmakers have come up with a plan that could lead to the creation of a Russian state-run crypto exchange. According to reports by Vedomosti, a popular Russian media outlet, the members of Russia’s parliament are working on a draft amendment that included the creation of a national crypto exchange.

The talks about the state-run exchange are said to have been ongoing since mid-November with sources saying that MPs discussed the issue with market participants likely from the Russian crypto industry.

One of the MPs, Sergey Altukhov, who is a member of the ruling United Russian Party was quoted saying:

“It makes no sense to say that cryptocurrencies do not exist. But the problem is that [crypto] circulates in a large stream outside government regulation. This represents billions of rubles worth of lost budget revenue – in the form of untaxed income.”

Why a national crypto exchange?

International sanctions after Russia invaded Ukraine have hit Russian financial and trading firms hard. However, some companies in the country have been experimenting with crypto-powered transactions, allowing customers to bypass the SWIFT messaging system and banks.

But the Russian Central Bank is vehemently anti-crypto and purposefully refuses to allow crypto into the Russian economy.

Creating a national crypto exchange would therefore allow trading firms to pay and receive crypto payments from internal and foreign partners without restrictions. The exchange is expected to facilitate companies trying to supply domestic customers with imported goods.