Major Crypto Exchanges Ready to Operate in Russia Under Proposed Rules, Report – Exchanges

Leading exchanges interviewed by the Russian press have indicated that they are not afraid of the upcoming strict crypto regulations. The requirement for coin trading platforms to set up a local office is one of the proposals in a regulatory roadmap drawn up by the government in Moscow.

Cryptocurrency exchanges to set up business in the Russian Federation

Some of the world's largest digital asset exchanges surveyed by Kommersant do not object to a possible requirement to establish a permanent presence in Russia in order to continue providing services to their citizens. The idea of ​​requiring foreign-based platforms to do this is part of the government's agenda Timetable to regulate the country's crypto space.

The document, reportedly signed by Deputy Prime Minister Dmitry Chernyshenko, was prepared as an alternative approach to the Bank of Russia Call for a trading ban, including for crypto operations. With its hardline stance, the central bank has found itself isolated as most other government institutions, including the Treasury Department, prefer regulation over prohibition.

Other requirements included in the roadmap include those related to anti-money laundering efforts, such as: B. the exchange of transaction data with Rosfin monitoring, Russia's financial watchdog. Crypto market players also need to put mechanisms in place to verify information about the ownership of the digital assets they deal with.

Binance, the largest crypto exchange by volume, told the company daily that it was ready to open a branch or even register a legal entity in Russia “if this contributes to user convenience and operational security.” Olga Goncharova, head of government relations for Russia and the CIS Countries, said that Binance supports the regulatory roadmap as a step that will “make operations more understandable, transparent and user-friendly,” while also noting that the proposals require further “calibration.”

Another major crypto trading platform, Huobi, stated that it hopes to have an “open dialogue with Russian regulators.” His team believes that a constructive cryptocurrency law would help increase confidence in digital assets and exchanges among both individual and institutional investors.

Crypto exchange AAX announced that it has no immediate plans to set up an office in the Russian Federation, but also said that it could start working in this direction if regulations are approved. AAX is ready to meet what it describes as “legitimate” regulatory requirements. The exchange, which serves around half a million Russian residents, noted that it stores information about its customers, their balances, transactions and trading activities.

Russian lawmakers are now working on one new invoice to close the regulatory gaps remaining after the adoption of the law “On Digital Financial Assets”. The authors want to define which companies are allowed to work with cryptocurrencies, including crypto exchanges. Trading platforms based abroad will be subject to a “special” registration system, Deputy Chairman of the Security and Anti-Corruption Committee Andrey Lugovoy, one of the sponsors, told Russian media.

Do you think crypto exchanges will be able to adapt to Russia's upcoming rules for the sector? Share your thoughts on this topic in the comments section below.

Lubomir Tassew

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens' quote: "Being a writer is what I am, not what I do." In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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