Russian State Duma deputies are considering a proposal to permit exchange trading in cryptocurrency under the oversight of the Central Bank.
This initiative is part of an experimental legal regime designed to explore digital innovation in the financial sector.
Russia to Potentially Greenlight Crypto Exchange Trading
The State Duma Committee on the Financial Market recently approved draft law No. 341257-8 in its second reading. The bill originally focused on experimenting with crypto-payments in foreign economic activities. However, the revised version now empowers the Central Bank to set rules for the organized trading of digital currencies within this experimental framework.
The Central Bank will conduct three pilot projects under this new regime:
- Testing and using digital currency for international trade contracts.
- Facilitating trading in digital currencies through licensed exchanges or trading systems.
- Establishing an operator for digital currency settlements within the national payment system (NPS).
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The experimental framework aims to test new approaches for trading cryptocurrency and digital assets on exchange platforms in Russia. It seeks to explore various models for regulating these trading operations, while also developing strategies to protect investors and minimize risks related to market volatility. Additionally, the framework will evaluate the effectiveness of different risk management systems.
Earlier reports indicated a shift in the authorities’ stance, moving away from banning cryptocurrency circulation. Deputy Anton Gorelkin highlighted that the new legislation excludes the prohibition of setting up exchanges outside the experimental legal zones.
“We successfully removed the provision that prohibited the organization of cryptocurrency circulation, which had raised significant concerns among industry representatives. While the ban on advertising digital currencies remains, it will be addressed in the upcoming amendments to the Federal Law,” he shared.
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If the law passes, the Central Bank could approve the program by September 1, 2024. The program will outline the procedures for accessing and terminating digital currency trading, set requirements for trading organizers, and establish conditions for trading activities.
The Russian Central Bank has long opposed any cryptoassets. According to current legislation, Russian residents cannot use cryptocurrency for payments. Although purchasing cryptocurrency on foreign exchanges is not prohibited, digital asset turnover within Russia remains in a “gray zone.”
However, external circumstances are gradually forcing the regulator to reconsider its stance. Previously, there was a proposal to legalize stablecoins for international settlements. Experts believe this move could simplify transactions among BRICS countries and mitigate the impact of Western sanctions.
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