Despite the impending ban, a major cryptocurrency exchange is considering expanding into Russia

Binance claims that the move will help it grow.

Despite a proposed crypto ban in Russia, Binance, the world's largest cryptocurrency exchange, wants to expand.

Binance Eastern European Director Gleb Kostarev believes that expanding to Russia is strategically important for the crypto exchange's growth.

"Our goal is to obtain a license and conduct legal business where the regulation allows," Kostarev told Reuters, adding that Binance expects Russia to take a progressive regulatory approach that could set a precedent for similar regulations in neighbouring countries.

Russia is keen to regulate its emerging cryptocurrency market. The country's annual volume of cryptocurrency transactions, according to the central bank, is close to $5 billion.

The regulator, which has been increasingly critical of cryptocurrencies in recent years, has proposed a complete ban on cryptocurrency trading and mining in the country.

However, the proposal has been met with opposition from the general public as well as other government ministries, who have called for a more moderate approach and regulation rather than prohibition. This week, the Ministry of Finance announced that such regulations are already in the works, stating that crypto technologies "should get a chance to develop."

"For now, we consider this as an invitation to dialogue with the regulator." Kostarev said of the proposed ban. He also stated that Russia's approach to cryptocurrency regulation may have an impact on its neighbours.

“In Ukraine, Kazakhstan, and Uzbekistan they are more loyal to cryptocurrencies and are taking steps towards liberalization, rather than restriction. But local regulators are taking these steps with an eye on Russia.”

Cryptocurrencies are currently legal in Russia and can be used for financial transactions, but they cannot be used to buy goods or services.

By fLEXI tEAM