Russia's step towards regulating cryptocurrencies draws attention to other countries
Russia's step towards regulating cryptocurrencies draws attention to other countries
- The Russian central bank and President Vladimir Putin must reconcile their different views of digital assets
- 11 % of the global Bitcoin mining are eliminated, which gives the legislator a great incentive to adequately regulate the industry
Russia's “not surprising” step to regulate cryptocurrency, according to industry participants, is expected to spur other countries to follow this example.
according to a framework is worked out by the Russian government and central bank expects you to develop new laws or change existing laws to monitor crypto as a currency. According to Russia, the measures will stabilize all broader economic effects of digital assets.
Anto Paroian, Chief Operating Officer of the Digital Assets Investment Fund Ark36, said that Russia's response to the rise of crypto reflects a broader shift in the nations that admit that the technology will remain here.
"Overall authorities [are starting to] you can see that crypto in the digital age becomes such a deeply rooted part of the way in which people think about money and deal with the fact that the political and economic costs of a ban seem to be far greater than the risk of coexisting it with the old financial systems," said Paroian block works by email.
According to Nick Du Cros, Head of Compliance and Regulatory Affairs at Coinshares, the time is of crucial importance before international committees begin to influence politics.
"These suggestions will probably send out the message that the countries should quickly issue local regulations and not to wait for international standards," said du Cros and referred to the political forum, which is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the USA.
Anthony Pompliano, founder of Pomp Investments, wrote in a Wednesday newsletter that Russia, when it turns crypto a "likeable" ear-including the inclusion of digital assets in his balance-"would force the United States to intervene".
"It is a global competition that is going on, which focuses on a decentralized, open system; everyone can join the system," wrote Pompliano. "The game theory says that nobody wants to start the cascade, but as soon as your opponent does, you are forced to take over the technology or risk being left behind."
The United States will in any case observe the developments in Russia, which will work out laws by 18 February, including standards for the taxation of crypto.
The measures come according to the Russian central bank last month Restrict of the circulation and Exchange of cryptocurrencies, ban on crypto investments by financial institutions and ban on crypto mining.
Since then, Russian President Vladimir Putin has said that he supported a plan to tax and regulate mining and referred to "competitive advantages" that Russia could draw from crypto mining.
In the meantime,members of the US Congress have held hearings on crypto in recent months, and industry observers expect more regulatory clarity this year. A cross-party draft law that was introduced last week suggested tax exemptions for crypto transactions of $ 200 or less.
The USA and Russia both have great economic incentives to implement a plan if you consider that the latter constitutes about 11 % of the global Bitcoin mining, according to the University of Cambridge, and the former controls 35 % Bitcoin-current consumption index . Both countries increased their hashates after China's mining ban.
Whit Gibbs, CEO of Compass Mining– that operates two mining facilities in Siberia, Russia-described the country's approach as a "do-no-harm" and added that Russia had made great progress in advertising for international investors to set up mining businesses there.
"I think most nations are considering taking similar measures to recognize Bitcoin and cryptocurrencies as a currency," said Gibbs. "Hopefully this positive result influences other nations to take the same official attitude."
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The contribution "Russia's step to regulate cryptocurrency draws other countries" is not financial advice.