Russian lawmakers have decided to end plans to create a state-owned cryptocurrency exchange, planning instead to set rules and regulations for existing companies.

Colin Wu of Wu Blockchain delivered the story on Twitter on Monday, May 29, 2023. He linked a translation from a Russian news outlet explaining the country’s new focus is allowing private companies to build crypto exchanges.

According to local media news reports, Director of the Financial Policy Department of the Ministry of Finance for the Russian Federation, Ivan Chebeskov said, the Ministry does not support the establishment of one national crypto exchange.

“Instead, the idea is to legally regulate the possibility of businesses creating such sites,” said Chebeskov, quoted from Decrypt, Wednesday (14/6/2023).

The head of the Russian lower house committee on financial markets, Anatoly Aksakov added, instead of creating one national crypto exchange, Russia plans to establish rules for the establishment and operation of such an infrastructure.

He added crypto exchanges would be allowed to facilitate cross-border payments, although he did not specify which ones, and acknowledged that they might face new restrictions.

Izvestia, the Russian local media that published the story, reported that the Central Bank may regulate the work of these platforms, and that the agency will manage international settlements within the country’s regulatory framework.

Russian authorities have been running vague rules for digital assets for years. Early last year, the Bank of Russia proposed an outright ban on crypto payments, and a month later the Ministry of Finance submitted a proposal for Bitcoin regulation.

Later, Russian President, Vladimir Putin signed into law to ban payments in digital assets, only for the country to investigate stablecoins as a way to avoid sanctions.