• Russia rescinded its decision to create a National Bitcoin Exchange.
• The country has decided to rather focus on regulations to control crypto exchanges.

Russia was earlier reported to be working on a national crypto exchange despite the divided opinions between the Ministry of Finance and the Central Bank. However, the latest report discloses that the country has discarded the plan to rather focus on regulations to control operations of exchanges according to Anatoly Aksakov, the head of the State Duma committee on the financial market.

In his statement, Aksakov acknowledged the contribution of exchanges to the country’s economy by facilitating cross-border transactions for businesses. Crypto payments worth $10 billion are said to be processed annually. 

However, they may be restricted by the introduction of the new regulation. Aksakov further stated that these regulations will come up with interesting opportunities for new organizations. The Ministry of Finance has also agreed on the need for comprehensive guidelines to control the operations of the exchanges amid the crypto adoption in Russia. 

According to reports, the Central Bank may be in charge of this initiative. Several reports confirm that the Ministry of Finance was never in agreement with the establishment of the national crypto exchange. Their only position was the formulation of regulations. Interestingly, the decision to abandon the national exchange plan is highly welcomed by market participants as well.

Oleg Ogiyenko, the director for government relations at BitRiver, has observed that the crypto regulations would protect consumers by minimizing risks associated with sanctions and cyber attacks on companies. In this case, the growing crypto market would pose limited or no concerns. 

Crypto Exchanges Can be Licensed and Controlled

Ivan Gostev, commercial director of GIS Mining, also believes that regulations would not hinder growth as some countries have been able to enforce legislation while allowing freedom for companies to operate. According to him, platforms can be licensed and controlled in terms of financial reporting and anti-money laundering. These regulations are expected as early as 2024. 

Evgenia Burova, director of communications at the Garantex commented:

Now there are many countries where legal entities and individuals can accept payments in cryptocurrencies. At the same time, the system can work as follows: the company will buy digital currency on the site, and then through it, conduct a transaction with the counterparty.

Stanislav Rozhdestvensky, Director of Strategic Development at CoinKit LLC has also stated that cross-border settlement cannot be blocked.

The largest cryptocurrencies are public in their structure – anyone can see the records of operations. Calculations within one exchange platform can still be hidden from the rest of the world, but replenishment of the account from an external wallet can be analyzed and the source can be established. However, it is quite possible to make payments independent of blocking – unlike banks, the blockchain does not provide for such a function.

In the wake of this news, Bitcoin has surged by 2 percent in the last seven days to trade at $27,993.58. Currently, investors are very bullish on the digital asset. Similarly, Ethereum has a current bullish sentiment and has surged by 3 percent in the last seven days to trade at $1,916.20. 

Recommended for you:

• Buy Bitcoin Guide
• Bitcoin Wallet Tutorial
• Check 24-hour Bitcoin Price
• More Bitcoin News
• What is Bitcoin?