Russian regulators are promising a “simple licensing” regime for crypto platforms that keep away from the country’s securities market.
The relaxed requirements for coin trading and wallet services should bring more of the already active providers out of the shadow economy.
Bank of Russia seeks to legalize existing crypto firms through easier rules
Licensing procedures will be simpler for cryptocurrency exchanges and digital-asset custodians that are not planning to work with securities, indicated a top executive of the Central Bank of Russia (CBR).
According to Ekaterina Lozgacheva, director of the regulator’s Department for Strategic Development of the Financial Markets, this approach will help them move out of the gray sector.
Her statements come after last month, when the monetary authority unveiled a new concept for comprehensive regulation of the Russian crypto space.
As part of its proposals, already filed for government review, traditional institutions such as stock exchanges and brokers, will be able to operate with the new asset class under their current licenses and using existing infrastructure.
However, platforms specialized in providing crypto-related services will have to meet a set of specific standards that may not be as tough as initially expected.
“We believe that separate requirements are necessary for participants such as digital depositories and crypto exchanges to allow them to transition to the legal realm,” Lozgacheva stated.
Quoted by the Finmarket financial news outlet on Thursday, she elaborated:
“Such simple licensing is necessary and, in our view, it will enable the transition from a gray area to a regulated one for those who truly need it,” the CBR official insisted.
Additional rules to reduce crypto exposure for traditional institutions
Lozgacheva added that Bank of Russia plans to introduce special prudential requirements for banks and brokers to limit their exposure to risky crypto assets.
“If any risks arise in cryptocurrency transactions, then core activities in the traditional financial market should not suffer any losses. This is important,” she emphasized.
The representative of Russia’s main financial regulator also clarified that cryptocurrency obtained through mining will be sold both in Russia and abroad without any restrictions.
Moscow legalized the minting of digital currencies like Bitcoin (BTC) in late 2024 and has been trying to tap into the growing industry’s profits.
To achieve that, Russian officials say the country needs to build its own crypto trading infrastructure and increase the number of miners registered with the tax service.
Ekaterina Lozgacheva made the comments during an event branded as Russia’s “First Political Crypto Forum,” which was organized by the right-wing Liberal Democratic Party of Russia, a proponent of the sector’s legalization.
Among the ideas discussed at the conference was a proposal pitched by the organizers to introduce an amnesty for illegally imported mining equipment.
According to Leonid Slutsky, leader of the nationalist LDPR, a move like that would bring more mining enterprises out of the shadows as they are required to register their hardware as well.
Speaking to journalists on the sidelines of the same event, Russian Deputy Finance Minister Ivan Chebeskov expressed his department’s support for the CBR’s strategy to legalize the crypto sector.
According to an excerpt of the central bank’s new policy, published on its website in late December, this will be accomplished by recognizing cryptocurrencies and stablecoins as “monetary assets” in Russia.
Financial authorities also intend to significantly widen investor access by admitting non-qualified investors to the strictly regulated and legal Russian crypto market.
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Source: https://www.cryptopolitan.com/russia-simple-licensing-for-crypto-exchanges/
