Russia Urged to Legalize Domestic Crypto Exchange by Tax Chief
The head of Russia’s tax authority is advocating for the legalization of domestic cryptocurrency exchange within the country. Currently, the majority of cryptocurrencies mined in Russia are being sold abroad, hindering the growth of the industry. The call to allow for local crypto sales comes amidst ongoing discussions in Moscow regarding the establishment of Russian trading platforms for digital assets.
Tax Chief Calls for Crypto Trading Infrastructure in Russia
Daniil Egorov, the head of Russia’s Federal Tax Service (FNS), emphasized the need for Russia to develop its own infrastructure to facilitate the legal sale of cryptocurrencies within the country. With cryptocurrency mining already legalized in Russia, Egorov argued that it is essential to provide miners with the opportunity to sell their digital coins domestically.
Currently, Russian miners are compelled to sell their cryptocurrencies abroad, which Egorov believes hinders their development. He stressed the importance of establishing infrastructure in Russia to enable miners to legally sell the coins they have mined. Egorov stated:
“Naturally, there must be some kind of infrastructure on the territory of Russia, so that if they mined it legally, they could sell it legally.”
Egorov highlighted the inconsistency of allowing mining but restricting the sale of mined coins. He acknowledged the growing number of companies and individuals involved in mining in Russia and emphasized the need to bring the industry out of the shadow economy.
Deputy Finance Minister Ivan Chebeskov revealed that only 30% of participants in the sector have registered with the FNS, indicating that more than two-thirds of Russian crypto miners have yet to apply for registration.
Plans for Russian Crypto Exchanges Underway
The Ministry of Finance and the Bank of Russia are currently in discussions regarding the legalization of crypto trading platforms in Russia. These exchanges would operate within the country’s experimental legal regime (ELR) for cryptocurrency operations, which was introduced to facilitate cryptocurrency use in foreign trade.
Chebeskov emphasized that the authorities are considering allowing cryptocurrency trading only for “highly qualified” investors with significant knowledge, understanding, and capital. He acknowledged the widespread use of cryptocurrencies among ordinary Russians and the need to address exchanges outside the ELR.
With ongoing efforts to establish Russian crypto exchanges and legalize domestic crypto sales, Russia’s cryptocurrency industry is poised for further development and growth.