Russia is likely to consider setting up at least two cryptocurrency exchanges to support foreign economic activity, Kommersant reports. According to the report, one of the exchanges would use the St. Petersburg Currency Exchange (SPCE) database for foreign business.
The other exchange would be established in Moscow. The sources did not disclose, however, whether it would be established on top of the Moscow Exchange or separately.
Initially, only a few users will use these exchanges in “test mode,” said Mikhail Ouspensky, a member of the State Duma of the Russian Federation’s cryptocurrency regulatory affairs. Later, it will be open to large exporters and importers, he added.
Ouspensky believes that small and medium-sized businesses, especially individuals, are unlikely to get unrestricted access to exchanges at first. “It is important to emphasize once again that the contours of the future experiment are completely at the mercy of the regulator,” he added.
Exchanges will focus on the Chinese yuan and stablecoins linked to the BRICS currency
In addition, cryptocurrency exchanges will focus on creating stablecoins linked to the Chinese yuan and a basket of BRICS currencies. Russia has recently discussed a favorable environment for stablecoin, Russia’s central bank, said in July that it was considering legalizing stablecoin for cross-border transactions.
In addition, Russian commodity companies have turned to stablecoin to conduct financial transactions with Chinese counterparts. These steps were in response to international restrictions and tighter compliance measures.
Oleg Ogienko, head of communications at BitRiver, told Kommersant that stablecoins are digital financial assets under Russian legislation.
Ouspensky further noted that the project involves significant risks. For example, if the confidentiality of the transaction is breached, information about the transaction “could end up on sanction lists.” It would also lead to the blocking of transactions with cryptoassets purchased on such national exchanges.
“In short, if information leaks into the public domain that a cryptocurrency was purchased on a Russian exchange, it will be easy to track and mark absolutely all transactions as suspiciouswith special technical means.” The expert believes that the centralized nature would kill any trust.