Russia’s Finance Ministry and central bank are in talks about setting up a domestic crypto exchange, though no final decision has been made yet.

As Russia explores the development of its own crypto trading platforms, driven by the need to circumvent the impact of international sanctions, the country’s top financial authorities are grappling with unresolved complexities.

According to a report by state-run news agency TASS, Finance Minister Anton Siluanov confirmed the ongoing negotiations between the Ministry of Finance and the Bank of Russia. Siluanov noted that while the discussions are thorough, no definitive decision has been reached.

“We are actively discussing this topic, but we have not yet found a solution on how to implement it.”

Anton Siluanov

The move to establish a regulated crypto exchange follows a legislative step made by President Vladimir Putin, who signed a law in early August legalizing crypto mining in Russia. The legislation aims to create a legal framework for the issuance and circulation of cryptocurrencies, which are still banned as legal tender in the country.

Russia one step closer to legalizing crypto

Russia, which ranked third globally in Bitcoin mining capacity at the end of 2021, according to data from the Cambridge Centre for Alternative Finance, has since risen to become the second-largest Bitcoin miner, trailing only the U.S. The new law appears to be part of a broader strategy to leverage this capacity by facilitating legal crypto activities within the country.

In addition to these efforts, Russia has been considering ways to integrate cryptocurrency into its financial system to ease cross-border trade. In mid-July, the Ministry of Finance reportedly explored the possibility of permitting crypto trading on traditional stock exchanges, but limited to professional investors. However, it remains unclear if any progress has been made on this front.