Russia plans to set up crypto exchanges to support global trade

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Russia is considering setting up at least two cryptocurrency exchanges in a bid to boost global trade, according to a new report by local media outlet Kommersant, citing a source familiar with the matter. The target locations for the new scholarships are Moscow and St. Petersburg.

The report says that the creation and operation of these exchanges would be governed in an experimental legal regime, as existing laws do not clearly address the operation of crypto exchanges in the country.

These hubs will initially serve a select group of users, particularly subsidiaries of blue chip companies, the report notes. Small and medium-sized enterprises and individuals are unlikely to have access in the first phase.

As mentioned, one of the key ideas behind these exchanges is the creation of stable currencies pegged to the Chinese yuan and a basket of BRICS currencies. However, there are challenges related to the legal nature, convertibility, liquidity and technological implementation of these stablecoins within the Russian blockchain system, the report explains.

Skepticism about adoption risks and penalties

Nikita Vassev, the founder of TerraCrypto, is skeptical about the adoption of new exchanges as well as the use of stablecoins.

“Those who have a choice will not trade convenient platforms developed by the best developers over the years for in-house platforms,” ​​noted Vassev.

“The same goes for stablecoins. They will only be used by those who have no other option. The only scenario in which a market participant would use a national platform is out of desperation,” he added.

Experts also warn of major risks associated with these exchanges, particularly the possibility of transactions being tracked and added to sanctions lists, which could lead to blocked transactions and loss of trust in these platforms.

Russia is actively advancing its crypto landscape after President Vladimir Putin signed a law legalizing crypto mining in the country earlier this month. According to the new regulations, registered legal entities and individual entrepreneurs are allowed to engage in mining activities.

While there are proposals to restrict non-Russian crypto operations and limit the creation of crypto exchanges, the legislation does not outright ban crypto. The initiative to open national cryptocurrency exchanges signals a major step in its efforts to integrate cryptocurrency into its economy, with a focus on establishing a controlled framework for crypto activities.

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