Russia is planning to launch two new cryptocurrency exchanges, one in Moscow and another in St. Petersburg, to help support foreign trade. These exchanges will likely operate under special legal conditions, but experts are concerned about the challenges they might face due to sanctions and regulatory issues.
New Crypto Exchanges for Trade
According to Kommersant, Russian authorities are considering setting up two crypto exchanges to assist with international trade. One exchange will use the existing St. Petersburg Currency Exchange, while the other is planned for Moscow.
According to Kommersant, Russia plans to create at least two cryptocurrency exchanges, one focused on foreign economic and trade activities; the other is planned to be established in Moscow. In addition, a stable currency linked to the RMB and the BRICS currency basket will be…
— Wu Blockchain (@WuBlockchain) August 23, 2024
It’s still undecided whether the Moscow Exchange will be part of the Moscow Exchange or will run separately under special legal rules. Meanwhile, the creation of these exchanges aims to enhance Russia’s involvement in the global crypto market.
In addition to the exchanges, Russia plans to introduce a stablecoin linked to the Chinese yuan (RMB) and the BRICS currency basket. This move is part of a broader strategy to strengthen Russia’s financial connections with key global economies and diversify its cryptocurrency offerings.
However, Oleg Ogienko, CEO of BitRiver, mentioned that creating these stablecoins could be challenging due to issues with their convertibility and liquidity. Ogienko also noted that, under Russian law, stablecoins are considered digital financial assets because they have an issuing entity responsible for maintaining their value.
Details and Implications
The new exchanges and stablecoins are expected to operate under an experimental legal regime. This framework will allow Russia to test and refine its approach to cryptocurrency regulation. Initially, these platforms will likely be accessible only to large businesses and key economic players, with smaller businesses and individuals gaining access at a later stage.
Experts warn that while these developments could boost Russia’s crypto market, there are risks involved. The transparency of blockchain technology could expose transactions to international scrutiny, potentially leading to sanctions or restrictions.
Potential Risks and Concerns
While these exchanges could provide new opportunities for Russian businesses in international trade, experts have raised concerns about potential risks. Nikita Vassev, founder of TerraCrypto, believes most users will prefer established international platforms over these new domestic ones unless they have no other options.
He also indicated that trust in these new exchanges might be low due to their centralized nature.