Russia Moves Ahead with Regulating Crypto as Form of Currency

According to experts of the industry, Russia’s “unsurprising” decision to regulate cryptocurrencies will encourage other countries to follow suit. Policymakers are anticipated to establish new legislation to supervise crypto as a currency, based on a framework developed by Russia’s government and central bank. According to Russia, the restrictions will stabilize any broader economic effects from digital assets.

Russia’s thought process towards the crypto rise, according to Anto Paroian, COO of ARK36, represents a broader movement in governments accepting the technology is here to stay. Overall, authorities are recognizing that cryptocurrency is turning into an increasingly important component of how users are considering and dealing with money in the digital age.

According to Nick du Cros, heading the compliance and regulatory affairs at CoinShares, this is the right time before other countries begin to change policy.

In a newsletter, Anthony Pompliano, Pomp Investments founder, stated that Russia’s “sympathetic” stance toward crypto, which also includes putting digital assets on its balance sheet, will “push the hand of the United States.”

At present global competition has increased, with a decentralized, open system at its core, into which anyone can plug. In any case, the United States will be keeping a close eye on developments in Russia, which is expected to draft legislation by February 18 that includes guidelines for taxing cryptocurrency.

According to a document provided by the government, the number of residents reserving digital assets has increased “significantly.” According to estimates, over 12 million crypto wallets have been created, with a total worth of two trillion rubles.

Whit Gibbs, Compass Mining CEO, running two mining sites in Russia’s Siberia, described the country’s policy as “do-no-harm,” further mentioning that Russia is on the road to significant progress in attracting international mining firms.