Russia Plans to Launch Two Crypto Exchanges, One in Moscow and the Other in St. Petersburg

This move underscores the need to boost foreign economic activity (FEA), Moreover, it aims to build an RMB-linked BRICS stablecoin.

As part of its broader strategy to enhance foreign economic activity (FEA), Russia is now planning to launch two crypto exchanges—one in Moscow and the other in St. Petersburg. This initiative also aligns with the government's goal of creating an RMB-linked BRICS stablecoin.

The crypto exchange initiative aims to introduce a new avenue for digital transactions. However, experts have raised concerns regarding the potential limitations and risks associated with this project, especially considering the international sanctions imposed on Russia.

One of the crypto exchanges will likely utilize the infrastructure of the St. Petersburg Currency Exchange (SPCE) to facilitate FEA, according to a report by Kommersant. The other platform is expected to be based in Moscow. It is unclear whether this exchange will be built on the foundation of the existing Moscow Exchange or as a separate entity within an experimental legal framework.

The main focus of these exchanges will be the creation and use of stablecoins. Stablecoins are a type of crypto that is usually pegged to a reserve of assets, such as a national currency or a basket of currencies. In this case, the Russian government is reportedly considering stablecoins linked to the Chinese Renminbi (RMB) Yuan and the BRICS currency basket.

This move is aimed at boosting economic cooperation among the BRICS nations (Brazil, Russia, India, China, and South Africa). Currently, BRICS is exploring dedollarization via crypto and blockchain. However, developing and deploying a BRICS stablecoin via newly launched crypto exchanges presents several challenges.

For instance, Oleg Ogienko, CEO of BitRiver, highlighted the technological difficulties in integrating stablecoins into Russia’s blockchain infrastructure. He explained that "stablecoins, due to their legal nature, are more like cryptocurrency.” This could affect their convertibility, liquidity, and security. The complexity of these issues might hinder the smooth adoption of stablecoins in Russia.

In terms of regulatory frameworks, Russia currently operates under Federal Law No. 259 “On Digital Financial Assets.” This regulation provides the legal basis for the issuance and circulation of digital assets. However, this legislation does not specifically address the creation or regulation of cryptocurrency exchanges.

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