Bank of Russia: Crypto Exchanges Can Work with DeFi

With the Bank of Russia’s official sanction, crypto exchanges are now in a position to do business with DeFi protocols. The regulator has given Russian platforms the go-ahead to transact through decentralized finance and to put coins held in external wallets on their books.

New Rules for Crypto Exchanges DeFi Operations

Pro Blockchain Media Live reports that under this new dispensation from the Bank of Russia, there is no requirement to first place assets in a digital depository within Russia for them to be recognized, a departure from previous practice. It is a loosening of the rules that affords greater operational leeway to exchanges and users alike in dealing with DeFi infrastructure around the world.

Yet the scope of the permission is limited. The host of Pro Blockchain Media Live points out that this does not mean an end to other legal requirements. Platforms will still have to ensure they comply with the rest of the regulatory regime in Russia; KYC and anti-money laundering protocols remain as binding as ever.

Implications for Investors and Future Changes

Non-qualified investors should take note of the September 1, 2027 deadline. After that date, the only coins that can be deposited are those a Russian market organizer has made available for public trading. In time, this will likely put an end to the current practice of using DeFi protocols and external wallets, leaving most retail users with a much more limited selection of digital assets.

The channel’s guest also drew attention to the difference between a coin purchase and a transfer. It is incumbent on exchanges and investors to verify what the depository is licensed to accept before making a deposit. This step prevents transactional delays or other complications that can arise from trying to deposit a token the depository does not support.

No Relaxation of Legal Requirements

The Bank of Russia has made a significant change in allowing DeFi activity for crypto exchanges, yet it would be wrong to see this as an easing of the regulatory environment. Exchanges doing business in Russia are still bound by all the legal requirements that have been put forward, especially in matters of transparency and reporting, as well as in protecting investors.

It is a case of the authorities treading a middle course between caution and the adoption of new technology. With the crypto sector in flux, those in the market would do well to follow sources like the Pro Blockchain Telegram channel for a reliable account of how regulations are being interpreted and what they mean in practice.