Russian Crypto sector is worth $500B despite terrible regulation. According to Blockchain Life’s CEO, many cryptocurrency exchanges have Russian roots. They have either departed the country or are operating illegally.
According to a prominent industry executive. The Russian cryptocurrency market has expanded to hundreds of billions of dollars. Despite the absence of adequate cryptocurrency legislation.
Russian cryptocurrency event founder, Sergei Khitrov, as well as the founder of the cryptocurrency listing service Listing.Help. Delivered a keynote lecture on the current state of cryptocurrency regulation in Russia. At the VII Blockchain Life Forum in Moscow on Wednesday.
On the basis of information such as local cash flows associated with services such as cryptocurrency mining. Khitrov estimated the value of the Russian cryptocurrency market to be 20–40 trillion rubles ($280–550 billion). He further asserted that, if the Russian government adopts more accommodative legislation for the cryptocurrency industry. The industry might generate as much as 284 billion rubles ($4 billion) in tax revenue every year.
However, because Russian officials have continued to ignore the industry’s interests over the past several years. Local crypto enterprises have had little choice but to continue operating illegally or flee to other jurisdictions. In order to survive, according to Khitrov, who spoke with Cointelegraph.
Home-grown cryptocurrency exchange
In the absence of legislation that takes the interests of the crypto community into consideration. Russian crypto sector services will not be legally delivered.” For businesses, “coming out of the shadows” is not a profitable strategy, according to him.
The fact that not a single home-grown cryptocurrency exchange has formally established its business in Russia. Despite the enormous market size, according to Khitrov, it is a cause for concern.
There are numerous cryptocurrency exchanges with Russian roots. But these exchanges are either not formally registered or are simply headquartered. In other jurisdictions, according to the authors.
The executive stated that he has been genuinely devoted to negotiating crypto legislation with various government bodies. And that regulators have been well aware of the exodus of crypto people and enterprises. From the local market to other countries for some time. According to Khitrov, the Russian government has been looking for ways to bring large crypto enterprises. Back to the country, but has so far been unable to match the needs of the crypto industry.
Also highlighted was the fact that the Russian crypto community has so far exhibited a “total failure”. To comprehend the concept of paying taxes on cryptocurrency.
The Blockchain Life Forum
The Blockchain Life forum, which established in 2017, is a big cryptocurrency event in Russia. That takes place twice a year. The Blockchain Life forum, which took place in Moscow on Tuesday and Wednesday. Drew more than 5,000 attendees and speakers, including representatives. From the technology industry and government officials, such as Dmitry Marinichev. The Russian internet ombudsman, and Alexey Minaev. Who is also a representative from the Ministry of Economic Development.
There were executives from major worldwide cryptocurrency exchanges, such as Huobi and Exmo. As well as local crypto entrepreneurs, the majority of whom were retailers of Chinese Bitcoin (BTC) mining hardware. In attendance at the forum. An auction of nonfungible tokens (NFT) was also held as part of the event. Which arranged by Binance NFT. the NFT platform and marketplace owned by the world’s largest cryptocurrency exchange.