Major Exchanges Game For Upcoming Crypto Norms: Report

The Russian press recently polled leading exchanges and they found these organisations unafraid of the upcoming crypto regulations. One of the proposals in a regulatory roadmap drafted by the government is that coin trading platforms must establish local offices. 

Cryptocurrency exchanges setting up shop in the Russian Federation: 

The world’s largest exchanges of digital assets, interviewed by Kommersant, are not against the possible requirement to establish a permanent presence in Russia to continue offering services to its citizens. 

Government officials plan to compel foreign-based platforms to do so as part of their roadmap to regulate the country’s crypto market. The document, which is said to have been signed by deputy prime minister Dmitry Chernyshenko, is an alternative to the Bank of Russia’s proposal to ban crypto trading. 

The central bank has been in isolation due to its hardline stance, as most other government institutions, including the Finance Ministry, favour regulation over prohibition. 

The roadmap also includes requirements related to anti-money laundering initiatives, such as the sharing of transaction data with Rosfinmonitoring, Russia’s financial watchdog. The crypto market participants will also have to establish ways to verify the ownership of the digital assets they deal with. 

Binance, the largest crypto exchange by volume, told the business daily its willingness to open a branch or even register a legal entity in Russia “if that ensures the convenience and security of operations for the users”. 

Crypto exchange Binance told The Business Daily that it is all for opening a branch or even registering a legal entity in Russia “if that ensures user convenience and security”. 

Algorithms should be more understandable, transparent and user-friendly, according to Olga Goncharova, head of Binance’s government relations for Russia and the CIS. The proposal needs further “calibration,” Goncharova noted. 

One of the major crypto exchanges, Huobi, expressed its desire to engage in a constructive dialogue with Russian regulators regarding cryptocurrency. Its team believes that the creation of a cryptocurrency law in Russia will increase both individual and institutional investors’ confidence in digital assets and exchanges. 

It revealed it does not have immediate plans to open an office in the Russian Federation, but may start working in that direction if the regulations are approved. AAX is willing to comply with what it described as “legitimate” regulatory requirements. 

According to the exchange, which serves about half a million Russian residents, it keeps the information about its clients, their balances, transactions and trading activities. 

A new bill is currently being drafted in Russia to fill the regulatory gaps created by the adoption of the law “On Digital Financial Assets”. The authors intend to define which entities will be permitted to operate cryptocurrency exchanges. 

One of the sponsors, Andrey Lugovoy, Deputy Chair of the Security and Anti-Corruption Committee, told Russian media that foreign-incorporated trading platforms will be subject to an “exceptional” registration regime. 

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