The Russian Ministry of Finance and the Central Bank plan to launch a national Crypto exchange.

Deputy Minister of Finance Ivan Chebeskov stated that Russia’s current exchange infrastructure can support the upcoming crypto asset trading activities.

Source: cryptoslate

Compiled by: Blockchain Knight

Local media reported on April 23 that the Russian Ministry of Finance and the Central Bank plan to launch a Crypto asset exchange aimed only at high-qualified investors, confirming rumors from earlier this year.

The exchange aims to regulate digital asset activities within a pilot legal framework and promote its application in cross-border trade. It will operate under an experimental legal system established to allow foreign trade participants to conduct transaction settlements using Crypto assets.

The system, which comes into effect in September 2024, provides a strictly controlled environment for digital asset experimentation, but it does not legalize Crypto asset payments in the domestic economy of Russia.

Finance Minister Anton Siluanov outlined the plan at a recent Ministry of Finance committee meeting, indicating that the government intends to create a compliant channel for large-scale Crypto asset trading.

This move aims to pull crypto asset activities out of the informal market and place them under regulation.

Access Limited to Russian Financial Elites

The eligibility for the new platform will be limited to investors classified as “high quality,” which includes individuals holding large securities or deposits exceeding 100 million rubles, or individuals with an annual income exceeding 50 million rubles.

According to reports, officials are still finalizing the exact qualification criteria, and ongoing discussions are expected to incorporate the opinions of lawmakers.

Osman Kabaloev, a senior official from the Ministry of Finance, pointed out that the rules for investor access are still under review, and lawmakers have expressed interest in participating in the formulation of this framework. The authorities aim to establish clear standards while maintaining financial security and system integrity.

Previously, the Central Bank of Russia submitted a proposal to allow this elite class of investors to trade crypto assets within the scope of legal experimentation. However, the central bank still opposes the use of crypto assets for domestic payments outside of this system.

The regulatory agency also proposed banning residents from using digital assets for settlement between each other and imposing penalties for violations.

Pilot Use of Existing Infrastructure

Deputy Finance Minister Ivan Chebeskov stated that Russia’s current exchange infrastructure can support the upcoming crypto asset trading activities.

Authorities are also considering granting licenses to new exchanges that meet strict regulatory conditions. The pilot exchanges are not expected to be operational for at least six months.

Currently, Russian citizens are allowed to hold, mine, and trade crypto assets, but the law restricts them from using crypto assets for payments within the country. Due to the lack of centralized national exchanges, most crypto asset activities rely on foreign platforms, which brings additional legal and geopolitical risks.

The planned exchange marks a significant shift in Russia’s attitude towards digital assets, indicating that it is striving to balance innovation in global trade with strict domestic restrictions on the use of Crypto assets.