Russian Government Needs to Legalize Domestic Cryptocurrency Market
The head of the Russian Tax Service has proposed legalizing cryptocurrency exchanges in the country.
The cryptocurrency mining industry has been legalized, but the majority of the products of almost all mined coins are currently sold internationally, causing many limitations in the development of the domestic market. The statement comes amid heated discussions about launching digital trading platforms in Moscow.
Tax Head Stresses Need to Develop Infrastructure for Cryptocurrency Trading in Russia
The Russian National Tax Service (FNS) has stated that in order to promote the legal cryptocurrency mining industry, Russia needs to build a domestic trading ecosystem. In an interview with Russian media, Daniil Egorov said that since cryptocurrency mining is legal, it makes sense to create conditions for miners to sell coins domestically.
Russian miners currently have to sell their coins on international markets, however, if there were a domestic trading system, they could develop more sustainably. Mr. Egorov emphasized:
“Of course, there needs to be domestic infrastructure, so that legal miners can legally sell coins within Russian territory.”
He also explained that, under current regulations, if they have mined legally, they have the right to sell coins domestically without any hindrance.
Russia's Cryptocurrency Trading Ecosystem Faces Many Challenges
Currently, there are about 1,000 companies, individuals and more than 2,000 Russian citizens involved in cryptocurrency mining. According to FNS statistics, as of April this year, there were 722 applications on the mining register, of which 116 operate as mining infrastructure service providers.
Chairman Egorov believes that this number will increase, but bringing the entire mining industry out of the shadows still faces many challenges. In addition, miners using less than 6 thousand kWh of electricity per month are not required to register, which continues to pose risks to market transparency.
Deputy Finance Minister Ivan Chebeskov revealed that more than two-thirds of miners have not registered with tax authorities, while only 30% of operators in the industry have completed official registration procedures.
Meanwhile, Russia is considering launching a domestic cryptocurrency exchange.
In an interview with RBC, Chebeskov revealed that the Ministry of Finance and the Central Bank of Russia are discussing the possibility of legalizing cryptocurrency trading platforms within the experimental legal framework (ELR), in order to promote international payments and circumvent Western sanctions.
Currently, Russian investors can buy and sell cryptocurrency derivatives, but there is no infrastructure for direct trading in the country. Authorities are considering using existing exchanges for this purpose.
Chebeskov stressed that trading activities should be reserved for investors with deep understanding, financial qualifications and product knowledge. He said:
“They must have knowledge, significant investment, enough to accept the risks of the cryptocurrency market.”
However, he also admitted that the number of regular Russian users is still very large. Any ban at this point would have a negative impact on the domestic market.
Source: https://tintucbitcoin.com/thue-nga-de-xuat-hop-phap-hoa-tien-dien-tu/
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