How to cash out cryptocurrency in Russia: law and withdrawal options

Cryptocurrencies have burst into the life of modern people and have firmly established themselves in the sphere of financial relations.Not surprising, because what could be more convenient?anonymous transactions that take place in a few seconds, with penny commissions or without them at all. And most importantly, cryptocurrency transactions do not depend in any way on the citizenship, location and place of residence of the participants. This is very convenient both for freelancers and specialists who work with crypto projects, and for any type of financial relationship. Moreover, such transactions are not subject to any tax in Russia yet. Thus, more and more people are joining the trend and becoming owners of digital assets.

But among the majority of those who receive payment incryptocurrencies, there are few enthusiasts who are ready to leave their money in the form of coins in the account of a crypto wallet or exchange. After all, in addition to all the advantages listed above, cryptocurrencies still have one big drawback - an unstable exchange rate in relation to fiat currencies. Yes, if you receive $1,000 worth of coins today, you can wake up with $10,000 dollars tomorrow. But there is also a flip side to the coin, when an asset significantly loses value. Unfortunately, this is what is happening most often lately.

Of course, a smart decision would be to exchangecryptocurrencies for fiat, in order to immediately get the opportunity to pay for any purchases and manage their money, avoiding the risk of losing funds. In this article we will consider the options available for residents of Russia and not only the withdrawal of cryptocurrency, but also the legal side of the issue.

Cryptocurrency and Russian legislation

The status of cryptocurrencies in Russia is usually called“semi-legal”, and so it is. And this also works in the most ambiguous way. On the one hand, if it is not prohibited, then it is allowed. On the other hand, if it’s not allowed, then you understand... That’s how it is with cryptocurrencies. The Federal Tax Service does not consider cryptocurrencies to be a means of payment, so banks in Russia are in no hurry to open cryptocurrency accounts and issue cards. But the Tax Service considers digital assets to be valuable property that should be taxed. Although, at the legislative level there is still nothing, only very general references that leave loopholes for both citizens and regulatory authorities.

Officially, authorities consider such operations“Doubtful” and risky, but there is no ban on them. Do not forget that ownership of cryptocurrencies is regarded as the acquisition of a valuable asset, however, the Russians themselves must calculate the cost and send declarations to the Tax Service. In practice, this allows an ordinary user of crypto assets to make an exchange and sell their coins in all available ways.

If the amounts of turnover and withdrawal to bank cardsare impressive, then there is a potential chance to meet with Rosfinmonitoring employees and explain where you got so much money from and why the Tax Service doesn’t know about it. For example, in the United States, financial regulators requested data from cryptocurrency exchanges about users whose annual turnover exceeded $20,000 in order to collect taxes.

Cryptocurrency withdrawal options

First of all, when choosing ways to solve the problem of cryptocurrency cashing, people look at the following arguments:

• Withdrawal security. Few people will like to use a service where half of the offers to buy coins come from scammers;
• Cost. Many services charge a fee for their services, so it is fundamentally important at what price your asset will be sold;
• Speed. An important parameter is the time it takes to complete the operation of exchanging and withdrawing money;
• Convenience. How many actions will have to be done to exchange cryptocurrency for fiat.

Exchanges

The first and one of the most reliable withdrawal methodsis the use of cryptocurrency exchanges. One of the most popular platforms that support withdrawal of deposits to a bank card, the largest and most popular of such exchanges — Binance.

Exchanges are often a reliable tool.because, working with fiat currencies, they have licenses for such activities. In order to cash out cryptocurrency through the exchange, you need to register, transfer tokens to your account and use the cryptocurrency withdrawal.

As a way to withdraw, you can choose a bank card, Webmoney, Yandex.Money, PayPal or another service that works with fiat. Commissions are often quite low.

Disadvantages:

• Lack of anonymity. For withdrawal in fiat, most exchanges require personal information, a bank account and other data;
• Speed. Often withdrawal from the exchange to fiat accounts may take several days or longer.

Exchangers

A very common cashing methodcryptocurrency, which is the use of online resources that offer the exchange of crypto for fiat. Quite a risky way, because the services do not have any licenses, guarantees or control, and all operations are performed only on the trust of users and reputation. But thanks to services such as Bestchange, which feature a lot of working exchangers, their cost and rating, the security of cashing through such services has increased significantly.

To make an exchange, go toBestchange, indicate with filters which cryptocurrency you want to exchange and how to receive fiat money. Selecting the most suitable from the list of exchangers in terms of reputation and offered price, follow the link and follow the instructions.

Also for your convenience, we have prepared our own rating of reliable exchangers in which we ourselves have been exchanging for more than a year.

Advantages include simplicityuse, a variety of services where you can choose the most convenient exchange parameters, and the speed of the transaction, because payments occur after a couple of dozen confirmations of the transaction on the network.

Disadvantages:

• Sometimes the exchange rate is significantly different from the exchange one, and the user loses some of the funds;
• Limits. Often such services will not allow you to exchange amounts exceeding several thousand dollars;
• Security. There is a chance to run into scammers and lose money.

Peer-to-peer exchange

You can find many resources on the Internet forcommunication and discussion of transactions for exchanging cryptocurrencies for fiat. People make an appointment in person or exchange online. Advantages are: the absence of intermediaries and commissions, the ability to agree on any conditions or course.

The disadvantage is very obvious - high riskslosing money and falling for a scammer. No one controls such exchanges, and no one except you will protect your funds. In this case, the safest way to conduct an exchange without intermediaries is a personal meeting.

Also try to use proven services to search for transaction options, where it is most difficult for fraudsters to work. For example, LocalBitcoins.

E-money services

Not so long ago, support was added to the same Webmoneycryptocurrencies. To cash out, you will need to replenish your account with tokens, and then convert to the currency you need by sending funds to your fiat wallet.

Also, other opportunities providepayment systems such as Advcash, Payeer and more. It is convenient, safe and easy. But the disadvantage may be the insufficient number of supported cryptocurrencies, slow exchange and withdrawal, as well as not the lowest commissions.

The use of “cryptomats”

A terminal that allows you to cash and withdrawcryptocurrency operating on the principle of a conventional ATM. Cryptocurrency ATMs are not common in Russia, including due to the status of cryptocurrencies uncertain by law.

Although this is a rather convenient and standard method in a functional sense, the commissions can upset anyone who wants to use it, because sometimes they reach 10%.

Payment cards

There are several projects that have releasedAn analogue of bank cards linked to cryptocurrency accounts. With the help of such cards you can pay in stores and on the Internet, and conversion to fiat is automatic. In Russia, this method is practically not used.

Hope to provide you enoughinformation and answered the question “How to cash out cryptocurrency in Russia”. Having familiarized yourself with each, you can choose the most convenient method for you personally, because sometimes speed comes first, sometimes security, and most often, the exchange rate is in priority.

We remind you that in any financial transactions you should be very careful to save your funds from total or partial loss.

The material was prepared by analysts of the independent international rating agency NEIRONIX.

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