Russians have invested over USD 67 billion in cryptocurrencies, according to Anatoly Aksakov. Many are untrained investors, and because cryptocurrency is not backed by anything, pyramid schemes are more likely to occur.
According to a Russian legislator, the digital currency industry is unstable. Cryptocurrency values may swing by 20 – 30 percent in a matter of seconds. As a result, Aksakov explained: “It is critical to control the market, to safeguard our citizens, to set taxation and specific rights for cryptocurrency owners.” They must, however, be identified.
The declaration follows a similar one by Alexander Bastrykin, chairman of the Russian Federation’s Investigative Committee. He stated that cryptocurrencies should not be anonymous, and that required identification of all crypto users should be implemented in Russia.
Aksakov believes that crypto assets must be revealed to the government in order to prevent them from being used to finance crime, drug smuggling, and weapon acquisition. He also cited taxation – Russians are required to pay taxes on their crypto income under present legislation, but the Duma has yet to pass crypto taxation law.
If Russian authorities decide to legalise mining, Aksakov believes it should be recorded as an industrial activity and taxed. He also insisted on introducing varied rates for mining businesses’ energy which will increase in power costs with Russia’s bridge programme.
Sergei Mironov, the head of Aksakov’s social-democratic party asked the Bank of Russia to legitimize the cryptocurrency market and hasten the implementation of the digital ruble.
Law “On Digital Financial Assets” comes into effect in January 2021, including mining, trading, and taxes remain uncontrolled in Russia.
