Russia to launch state-run crypto exchange to boost tax revenue

Russia is planning to build a national cryptocurrency exchange as it believes it is running out of billions of rubles in tax revenue.

Sergei Altukhov, a member of the State Duma’s economic policy committee, said that cryptocurrencies “circulate in a large stream outside government regulation.”

Plan to track all crypto transactions

Last month, the Russian Ministry of Finance noted that Russian companies doing business within the Russian Federation have begun using cryptocurrencies to get around restrictions on international trade.

The Russian government has been planning and establishing legal specifications for international cryptocurrency transactions for months in anticipation. Although the government of the Russian Federation itself is pushing for a digital ruble over private cryptocurrencies.

With the new draft framework, legal regulations will oversee the use of digital assets in Russia. Reports last month said that live exchanges to convert crypto into fiat are taking place on Russian streets amid the cash crunch.

It turns out that despite efforts by the European Union to limit Russian access to cryptocurrencies, many remain a de facto alternative to the currency. Russian citizens are showing interest in the new financial instrument. And, exchange offices have appeared on the streets of Russian cities where transactions can be carried out using digital assets.

With limits imposed on bank withdrawals, citizens have resorted to alternative methods to meet the demand. Street traders are ready to buy USDT in exchange for dollars, despite the apparent shortage of dollars in the country.

Miners Can Use Exchanges

According to one official, the committee is pushing for a regulation plan and “concrete arguments for supervisory authorities.” Sources cited in the report say that the crypto exchange will not promote the use of digital currencies in Russia.

Another draft amendment on digital financial assets prohibits the advertising and circulation of digital assets in the Russian Federation. However, the same draft legalizes the mining of digital currency in Russia.

Therefore, the exchange will only be used for declaring and converting digital currencies. A move that will benefit Russia’s economy, which has been crippled by international sanctions. Russia is seeking to avoid penalties by legalizing cryptocurrency cross-border settlements through the expansion of mining operations. Plus, it plans to boost taxation revenue from the Russian wallet.


All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Source link

Leave a Comment