Russian lawmakers reportedly canceled plans to enact legislation that would have allowed the government to create a cryptocurrency platform, according to a local daily, Izvestia.
The lawmakers opted to establish a framework that would allow for the development of private crypto trading platforms under the control of the Russian central bank.
According to the reports, due to Russia’s annexation of Crimea last year, the United States and its European allies imposed financial sanctions on the country. Private crypto exchanges will be able to bypass these restrictions, enabling cross-border payments.
The initial scheme was a component of the planned revisions to the Russian legislation governing digital financial assets, which are anticipated to be unveiled in the second quarter of 2023.
By the end of 2023, according to Anatoly Aksakov, the head of the State Duma’s Committee on Financial Markets, legislation for these exchanges will be built and stated in a draft law.
The move follows the alleged rejection of the lawmakers’ request by the Russian Central Bank.
Following the failure of FTX and Alameda, a national cryptocurrency exchange was announced in November 2022.
The government had been urged by several Duma members to recognize the usage and existence of cryptocurrencies in the nation and to take control of them through a state-owned crypto platform.
The Russian cryptocurrency market is worth billions of rubles, claims legislator Sergey Altukhov. The government loses hundreds of millions in potential tax revenue since it mostly operates outside of state supervision.
Similar ideas were put forth by Altukhov in June 2022, when he encouraged Russia to develop a cryptocurrency platform based on the regulations of the Moscow Exchange. The Russian Central Bank would be strictly in charge of overseeing the operation of such a trading platform, he continued.
Major Russian cryptocurrency firms reject the concept of establishing a national cryptocurrency exchange and instead, favour the setting up of a regulated framework for these businesses.