Russia’s Minfin considers launching a domestic crypto exchange

The Russian Finance Ministry and the central bank are holding talks to establish a domestic cryptocurrency exchange, but no final decision has been made yet.

As Russia explores the development of its own cryptocurrency trading platforms amid the need to circumvent the impact of international sanctions, the country’s top financial authorities are grappling with unsolvable complexities.

Finance Minister Anton Siluanov confirmed ongoing negotiations between the Finance Ministry and the Bank of Russia, the state news agency TASS reported. Siluanov said the talks were comprehensive but no final decision had been reached.

“We are actively discussing this issue but have not yet found a solution on how to implement it.”

Anton Siluanov

The move to establish a regulated cryptocurrency exchange follows a legislative move by President Vladimir Putin, who signed a law legalizing crypto mining in Russia in early August. The legislation aims to create a legal framework for the issuance and circulation of cryptocurrencies, which are still banned as legal tender in the country.

Russia is one step closer to legalizing crypto

Russia, which ranked third globally in Bitcoin mining capacity as of the end of 2021 according to data from the Cambridge Center for Alternative Finance, has since become the second-largest Bitcoin miner behind only the United States. The new law appears to be part of a broader strategy to leverage that capacity by facilitating legal crypto activities within the country.

In addition to these efforts, Russia is considering ways to integrate cryptocurrency into its financial system to facilitate cross-border trade. In mid-July, it was reported that the Ministry of Finance was exploring the possibility of allowing cryptocurrency trading on traditional exchanges, but that this would be limited to professional investors. However, it remains unclear whether any progress has been made on this front.