Cryptocurrency in Russian
Tags: Mining, Crypto, Bitcoin, Cryptocurrency, Blockchain

A little bit about cryptocurrencies!

We have already talked about bitcoins, dogecoins, and other crypto coins. We have also examined crypto industry trends in Europe and the USA, but we have missed the most important thing: what about Russia’s digital money world and does it actually exist?

Cryptocurrencies are developing in an uneven manner. Some countries have given the green light for blockchain-based money, and they are outcompeting conventional payment methods at some point. In other countries, on the contrary, cryptocurrencies are strongly forbidden. One can even land up in jail for their usage.

Russia’s cryptocurrency situation is not quite simple. Let’s figure out what it means.

Attitude of the authorities

Cryptocurrencies are permitted in Russia, or rather not prohibited, as well as mining and ICOs… That’s all )

Put simply, there is no regulation yet. This is the official attitude of the authorities, specifically, its absence.

On September 19, 2018, it has transpired that a recent version of the bill “On Digital Financial Assets” does not contain a term ‘cryptocurrency’, while mining is defined as token emission for fund raising.

The bill does not prescribe cryptocurrency transactions. Now, only token operations are regulated. They can either confirm property rights and participation or fulfil the technical role during the purchase and turnover of digital assets.

The latest revision of the document does not reveal when cryptocurrencies will be legalized in Russia.

Well, following the old tradition, all is freely permitted except what is specifically prohibited…

How do miners feel in Russia and is crypto mining profitable there?

Mining of bitcoins or other tokens is legal, more accurately, not forbidden. According to statesmen, mining means profit that should be taxed, while the cryptocurrency obtaining behind the scenes is liable to punishment.

Miners have another attitude: they are not interested in legal mining because the purchase of expensive equipment is personal expenditures, and obtained cryptocurrency, in accordance with the legislation, becomes a common property of miners and the state. Thus, mining is not quite transparent in Russia. In other words, it stays in the sidelines, carefully monitoring the latest trends )

Miners’ taxation is not a single challenge in Russia, preventing mining in the country. Even now, it is legislatively prohibited to pay for goods and services in any currency save for rubles. The Ministry of Finance is offering to make this a criminal offence.

It turns out that the obtaining of cryptocurrencies is only half the work, and the question is how to obtain cash…

However, that all is not so bad. We have good news as well.

The advantages include a reasonable initiative of the authorities: they offer to establish electricity quotas in order to attract people to legal bitcoin mining. If you mine in a transparent way, you will receive electricity at the special price. Nevertheless, this way to bring miners out of the shadows has not yet shown the desired results.

At the same time, crypto ruble shrouded in mystery remains under wraps for all miners and crypto investors. Its launch will greatly change the Russian cryptocurrency market, as it will be likely supported by the government.



Prospects

It is quite difficult to predict with any certainty the development of Russia’s crypto industry. Government actions are similar to the wait-and-see concept rather than a clear solution: to ban or permit and release the crypto industry from pressure.

Why is it so? On the one hand, cryptocurrencies are profitable for the government during sanctions, because foreign investors are able to enter the Russian market anonymously using digital gold. On the other hand, assets can leave the country in the same way, transforming into luxury property in Malta or Gibraltar.

As to the blockchain technology, everything is clear: Russian President Vladimir Putin has approved it, stating that the country requires professionals in this area.

If the country, especially its President, says, “It has to be done”, specialists answer, “It will be done!”

A lot of government institutions and private organizations have been already integrating blockchain for several years, showing worthy results. We can mention here such a major project called ‘Smart city’ and Ethereum designed by Vitalik Buterin.

Summing up, Russia is a very promising country for the development of cryptocurrencies and blockchain technology in general: a huge amount of world-renowned specialists, an educated population, and resources. The only reason for the slow growth is an ambiguous attitude of the authorities, demotivating investors to put money into projects that can become illegal the next day.