In a revolutionary step, Russia has announced that it will use cryptocurrency exchanges to facilitate cross-border transactions, signaling a dramatic shift in its stance towards cryptocurrencies. As this move aligns with the global trend towards digitized finance, it could unleash a wave of innovation and intensify competition in the crypto industry.
This move is a strategic attempt to mitigate potential risks related to sanctions and cybersecurity threats to infrastructure and address the issue of market dominance.
Regulations in Russia for cryptocurrency exchanges
Oleg Ogienko, BitRiver’s Director of Government Relations, reportedly advocates establishing regulations for independent crypto organizations rather than creating a national cryptocurrency exchange. He believes that this approach would stimulate the growth of a competitive crypto industry by providing an innovative platform for its development.
Furthermore, Ivan Gostev, commercial director of GIS Mining, supports the proposal, arguing that a competitive regulatory framework for cryptocurrency exchanges could stimulate innovation and growth. He notes that while some nations have crafted regulatory laws for cryptocurrency exchanges, they have allowed for an organic evolution in the industry.
Crucially, Gostev points out that cryptocurrency exchanges can operate under a strict regulatory framework without compromising their innovative potential. He suggests licensing the platforms and enforcing strict financial reporting and anti-money laundering measures. In addition, he calls for protections against data breaches and communications security, along with trading volume restrictions to prevent price gouging.
Restrictions proposed by Oleg Ogienko
Oleg Ogienko believes that access to inexperienced investors should be restricted, especially in the early stages. There must be specific requirements for foreign cryptocurrency exchanges seeking to operate within Russia, particularly with regard to the security and confidentiality of Russian customer information.
In light of the sanctions, crypto platforms could be a lifeline for domestic companies, allowing them to handle international transactions. However, Alexei Tarapovsky of Anderida Financial Group warns of possible new restrictions.
However, it highlights the growing Western interest in cryptocurrencies for cross-border payments. Cryptocurrencies are reportedly already processing annual payments of around $10 billion.
