Russian Crypto Exchanges: Moscow in New Crypto Pivot?

Moscow ministers and the nation's Central Bank are discussing a plan to 'create' Russian crypto exchanges as the country continues to pivot to crypto assets. Per the state-run news agency TASS, Anton Siluanov, the Minister of Finance, has held talks with the bank about the proposed 'creation of legal crypto exchanges in Russia.'

Siluanov said the parties had not yet settled on a mutually agreeable 'solution.' But he claimed that a breakthrough may be close and that the relevant legislation 'may be ready for the fall session' of the State Duma.

'We have legalized our mining industry and the possibility of paying for foreign [goods and services] with the Bitcoin we mine. Now a question of additional regulation remains - creating our own legal crypto exchanges,' he stated.

The minister noted that existing Russian crypto exchanges still operate in a regulatory 'grey zone.' Under Russian law, crypto exchanges have no legal status and are not regulated by any Russian governmental body. Siluanov called recent legislative efforts to police crypto in Russia 'significant progress.'

Siluanov and Elvira Nabiullina are two of President Vladimir Putin's closest allies. However, they dissent over crypto regulation. Nabiullina is a staunch crypto-skeptic. Siluanov prefers a more progressive approach. This has led to a long impasse over crypto policy that only ended recently when Putin ordered them to speed up regulation efforts.

The order has resulted in fast-tracking laws governing crypto mining in Russia and using crypto in cross-border trade. Putin signed off on both laws this month.

They are currently slated to come into force on September 1. But with the bank opposed to allowing miners and trade firms to pump crypto into the Russian economy, a pressing question remains: What will happen to the coins miners and traders generate?

Will Russian Miners Sell Crypto Overseas or on the Domestic Market?

The bank previously said it wants Russian firms to sell their coins overseas. However, critics say this will lead to money laundering and could result in Western governments sanctioning exchanges that deal with Russian mining pools.

Several politicians have instead suggested creating Russian government-backed crypto exchanges. The Moscow and St. Petersburg exchanges have expressed an interest in crypto trading.

Russian Miners Focus on Bitcoin

Lawmakers have also suggested allowing qualified investors access to state-run crypto exchanges. While the Central Bank has previously dismissed such plans, the ministry may now be trying to revisit them.

Some suggest they could be a workaround allowing some Russian firms to deal with overseas banks. Recently, Russian media outlets have reported that several regional banks have stopped doing business with Moscow over fears of secondary Western sanctions.

Industry chiefs have claimed that the vast majority (over 90%) of Russian industrial miners focus their efforts on Bitcoin.