No matter how much we try to stay on top of things, one of the hottest questions right now is when, finally, cryptocurrency exchanges in Russia will receive their long-awaited licenses.
What’s happening?
At the moment, there is no licensing for cryptocurrency exchanges in Russia, but we are not rushing to be discouraged! In October 2024, Rosfinmonitoring submitted a bill that will require all cryptocurrency platforms to register and obtain a permit to operate. It’s like something out of the real world!
At the moment, there is no licensing for cryptocurrency exchanges in Russia, but we are not rushing to be discouraged! In October 2024, Rosfinmonitoring submitted a bill that will require all cryptocurrency platforms to register and obtain a permit to operate. It’s like something out of the real world!
What will change for crypto exchanges?
If the new law is passed (and we weren’t holding our breath), cryptocurrency platforms will be required to:
If the new law is passed (and we weren’t holding our breath), cryptocurrency platforms will be required to:
- Collect and store data about their clients (get ready to expand your data collection!).
- Record all transactions for at least 5 years (or until the crypto future becomes a true space age).
- Provide information to government authorities upon request (don’t worry, they’re probably eagerly awaiting all this data).
Why is this necessary?
Licensing is not just a formality. It’s an important step in the fight against money laundering and terrorism financing. Cryptocurrency exchanges that operate with Russian clients currently work under licenses from other countries, where the rules are much stricter.
Licensing is not just a formality. It’s an important step in the fight against money laundering and terrorism financing. Cryptocurrency exchanges that operate with Russian clients currently work under licenses from other countries, where the rules are much stricter.
When will this happen?
The law is expected to be passed by the end of 2025, but as always, there are no exact deadlines. If the process is delayed, we may have to wait until the next session of the State Duma. In the meantime, we’ll be topping up our popcorn supplies.
The law is expected to be passed by the end of 2025, but as always, there are no exact deadlines. If the process is delayed, we may have to wait until the next session of the State Duma. In the meantime, we’ll be topping up our popcorn supplies.
What are our neighbors doing?
In some countries, cryptocurrency exchange regulation has already been successfully implemented, and there are examples we can learn from:
In some countries, cryptocurrency exchange regulation has already been successfully implemented, and there are examples we can learn from:
- In January 2024, the Dubai branch of OKX received a VASP license from VARA to operate with retail and institutional investors in the UAE.
- Bybit received full approval from AFSA in Kazakhstan and a temporary license from VARA in Dubai.
- BingX and OKX are also licensed in Singapore, the Netherlands, and Malta.
- In Belarus, cryptocurrency exchanges are regulated through the High Technologies Park (HTP). For example, Tsifra Broker is one of the first licensed platforms operating under Belarusian standards, including mandatory client identification and transaction monitoring.
What will happen in Russia?
Rosfinmonitoring aims to complete the process by the end of 2025. However, as of now, there are no exact deadlines. We will carefully follow the developments. Legalization will open new opportunities for large exchanges but will also raise requirements for client identification and data storage, which could complicate things for smaller platforms.
Rosfinmonitoring aims to complete the process by the end of 2025. However, as of now, there are no exact deadlines. We will carefully follow the developments. Legalization will open new opportunities for large exchanges but will also raise requirements for client identification and data storage, which could complicate things for smaller platforms.