To boost its offshore economic activity, Russia plans to launch two major cryptocurrency exchanges in its region — one in Moscow and the other in St. Petersburg.
According to a reportThe initiative highlights Russia’s “strategic” move to integrate digital assets into its economy, focusing on the creation and use of stablecoins pegged to the Chinese yuan and the BRICS currency basket.
The goal is reportedly to “strengthen” economic cooperation among the BRICS countries — Brazil, Russia, India, China and South Africa — while advancing the country’s efforts toward “de-dollarization.”
2 Cryptocurrency Exchanges in Russia on the Horizon – Details
Russia’s initiative to launch new cryptocurrency exchanges aims to create a new platform for digital transactions, especially as international sanctions have restricted the country’s financial transactions on the global stage.
One of these exchanges is likely to use the existing infrastructure of the St. Petersburg Currency Exchange (SPCE) to support foreign economic activities.
The other exchange, based in Moscow, could either expand the scope of the existing Moscow Exchange or develop as an entirely new entity within a regulated legal environment.
The focus on stablecoins — cryptocurrencies linked to a reserve of assets such as national currencies — signals Russia’s intention to develop a “more robust” financial system that reduces its dependence on the US dollar.
However, despite these ambitious goals, several obstacles may hinder the effective implementation of the cryptocurrency exchange project in Russia. One of the main issues is the technological challenge of integrating stablecoins into Russia’s blockchain infrastructure.
Oleg Ogienko, CEO of BitRiver, noted that stablecoins function more like cryptocurrencies than traditional financial assets due to their legal properties.
This similarity could lead to “complexities related to transfer, liquidity, and security, which could pose a challenge to the ‘smooth’ adoption of stablecoins within Russia.
Challenges and Risks in Implementing the Russian Cryptocurrency Exchange Initiative
Beyond the technological challenges, regulatory issues also pose significant barriers. Russian Federal Law No. 259, which governs the issuance and circulation of digital assets, provides the legal framework for digital financial activities.
However, this legislation does not explicitly cover the establishment or regulation of cryptocurrency exchanges. Yaroslav Shchetzel of Rustam Kurmayev & Partners pointed out that there is no clear and coherent legal framework for launching and operating cryptocurrency exchanges under current Russian law.
The recently introduced pilot legal regime may form a legal basis for these new exchanges, but it has not yet been tested in this specific context.
These cryptocurrency exchanges are expected to launch gradually, initially allowing access to a limited set of users, such as affiliates of major exporters and importers.
Mikhail Uspensky, a member of the State Duma’s expert council on cryptocurrency legislation, noted that small and medium-sized businesses or individual users are unlikely to be able to get unrestricted access during the early stages.
He also warned of the potential risks associated with sanctions, especially the transparency inherent in blockchain technology, which could reveal transaction details and lead to dire consequences for the parties involved.
In addition, there are doubts about the appeal of these homegrown platforms. Nikita Vasev, founder of TerraCrypto, questioned the appeal of the new exchanges, suggesting that they may only be used by those who have no other alternatives.
Vasev claimed that most users are likely to continue to prefer established, globally recognized trading platforms unless other options are available.
Featured image created using DALL-E, chart from TradingView
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