Russia plans to develop crypto exchanges to support international trade
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Russia plans to establish crypto exchanges in Moscow and St. Petersburg to support international trade. The exchanges use stablecoins pegged to the Chinese yuan and BRICS currencies to reduce dependence on the US dollar.
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Russia is considering setting up at least two crypto exchanges to boost international trade, according to a source familiar with the matter. The target locations for the new exchanges are Moscow and St. Petersburg.
The report says that the creation and operation of these exchanges was governed by an experimental legal system, as the current laws do not clearly define the operation of crypto exchanges in the country.
These centers will initially serve a select group of users, particularly branches of “blue chip” companies, the report said. First of all, small and medium enterprises and individuals do not have access.
As mentioned, one of the key ideas behind these exchanges is to create a stable coin pegged to the Chinese yuan and the BRICS currencies. However, there are challenges related to the legal nature, flexibility, volatility and technology implementation of these stablecoins in Russia's blockchain system, the report said.
Doubts about adoption and suspension concerns
TerraCrypto founder Nikita Vassev is skeptical about the adoption of the new exchanges as well as the use of stablecoins.
Vassev said: “Those who have a choice do not trade convenient platforms built by the best developers in the past years.”
“The same is true of stablecoins. They are only used by those who have no other option. The only situation in which a market participant would use a local platform is out of desperation,” he added.
Experts warn that there are major risks associated with these exchanges, especially as transactions can be tracked and added to sanctions lists, which could lead to transaction closures and loss of trust in these platforms.
Russia is actively developing its crypto landscape after President Vladimir Putin signed a law earlier this month legalizing crypto mining in the country. Under the new regulations, registered legal entities and individual entrepreneurs are allowed to participate in mining operations.
While there are proposals to limit non-Russian crypto operations and the creation of crypto exchanges, the law does not outright ban crypto. The initiative to open local crypto exchanges marks a major step in efforts to integrate crypto into the economy, which focuses on establishing a regulatory framework for crypto activities.
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