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January 29, 2022

What Russia Crypto Decision Mean For Regional Expansion

Binance is hoping for a progressive regulatory approach to crypto from Russia, as it will be a determining factor in the company’s aspirations to expand in the nation.

Binance, the world’s largest cryptocurrency exchange, said in a Reuters story on Thursday that it hopes Russia agrees to a good regulatory attitude on digital assets so that it can develop its operations in the region.

Gleb Kostarev, Binance Eastern European Director, stated that the company’s goal is to seek a license and do legitimate business where the law allows. He went on to say that the corporation is hoping for a favourable outcome from Russia since it could influence neighboring countries’ policies.

Russia’s regulators have differing views on how to regulate cryptocurrency and have yet to reach an agreement.

Remember that the Central Bank of Russia (CBR) suggested a ban on crypto mining and use in the nation, claiming that the currency’s volatile nature makes it very risky for investors and a threat to financial stability.

The move by the top bank was deemed severe by Kostarev, who added that Binance saw it as an invitation to talk with the regulator.

Ivan Chebeskov, the department director of the Russian Finance Ministry, said a few days after the planned ban that laws should be put in place to allow crypto while also protecting investors, rather than outright banning them.

In the midst of contradictory possibilities for crypto legislation in Russia, President Vladimir Putin has urged regulators to strike an agreement.

While digital assets are inherently volatile, he believes that crypto mining would provide Russia with a competitive advantage.

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Meanwhile, Russia said in November that it will begin pilot testing of its digital ruble in early 2022 before making a final decision on whether or not to launch a Central Bank Digital Currency (CBDC).