Russia to Launch Regulated Crypto Exchange for Elite Investors

The Central Bank of Russia has also recently stated that it will create an AI-based surveillance system to fight crypto-related financial offenses. The platform will focus in particular on OTC crypto-to-fiat exchanges and monitor suspicious activity. It is being built with the aid of Rosfinmonitoring and other banks.

What Is the Experimental Legal Regime?

The Experimental Legal Regime gives Russia the option to experiment with new financial technologies in a regulated environment. The crypto exchange used here will be closed to the public, where legal and financial effects are scrutinized before expanding legalization.

Russia's Evolving Crypto Journey

• In January 2021, the "On Digital Financial Assets" lawRussia to Launch Regulated Crypto Exchange for Elite Investors prohibited the use of crypto as payment.
• The new plan is a significant shift, coming after intensified global sanctions and US restrictions on Russian-associated platforms like Garantex.
• The government has also suggested the creation of a state-sponsored stablecoin.

Legal Reforms and Future Plans

Evgeny Masharov, an official in Russia's Civic Chamber, has proposed establishing a government crypto fund from confiscated assets of criminals. Legal reforms are also in progress to legitimize crypto as an asset class.

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