Last Updated on May 30, 2023 by Bitfinsider

According to a report published on Sunday by a Russian news outlet, Russian legislators have decided to abandon plans to establish a state-owned cryptocurrency exchange in favour of establishing rules and regulations for already existing businesses.

On Monday morning, Colin Wu of Wu Blockchain revealed the news on Twitter. He provided a link to a translation of a Russian news source in which it was stated that the country’s new priority would be to allow private companies to construct cryptocurrency exchanges.

Ivan Chebeskov, director of the Financial Policy Department of the Ministry of Finance for the Russian Federation, was quoted in the news article as saying, “The Ministry did not support the establishment of a national crypto-exchange.” Instead, the concept is to “legally regulate the possibility of businesses creating such sites.”

Anatoly Aksakov, head of the Russian lower house committee on financial markets, stated, “Instead of creating one national crypto exchange, it is planned to establish rules for the establishment and operation of such infrastructures.”

He added that cryptocurrency exchanges will be permitted to facilitate cross-border payments, although he did not specify which ones, and conceded that they will likely be subject to new restrictions.

Izvestia, the Russian outlet that published the story, reported that the Central Bank will “probably” regulate the operation of these platforms and will administer international settlements within the country’s regulatory framework.

The news encouraged a number of private crypto operators within the Russian Federation.

For years, Russian authorities have had a lukewarm relationship with the digital asset market. The Bank of Russia proposed an outright prohibition on crypto payments at the beginning of 2017, and a month later, the Ministry of Finance submitted a proposal for Bitcoin regulations. Later, Vladimir Putin signed a law outlawing digital asset payments, only for Russia to investigate stablecoins as a means to circumvent sanctions.

As a result of its invasion of Ukraine, the West continues to impose financial sanctions against Russia, which are reflected in today’s news. Despite a history of contradictory signals, today may mark the beginning of a new era in the government’s relationship with cryptocurrencies.