October 1, 2022

Legislation hinders the development of the cryptocurrency market in Russia

Legislation hinders the development of the cryptocurrency market in Russia

The uncertainty of cryptocurrency regulation has become a serious problem for Russia. Government received many direct instructions from President Vladimir Putin that this task should be completed as soon as possible.

It was assumed that his presidential decree would become the main driving force for the State Duma deputies, but the deadline scheduled for July 2019 was not sustained.

Due to the lack of legislation, the stateThe crypto industry remains extremely tense. Investors are wary of investing heavily in such an uncertain environment. At any time, it is likely that the Russian government will ban cryptocurrencies due to a lack of resources to effectively manage them.

In this regard, cryptocurrency owners are looking for wayswithdraw cryptocurrencies from the country or cash them out, although this is becoming increasingly difficult. Recently, attempts have been made to put pressure on crypto exchangers, mining pools, which already experience a decrease in interest from users and entrepreneurs.

The lack of a legislative framework is pushing Russian investors to participate in online games, such as fantasy football with crypto investments. And that's why:

  • Transactions on these platforms are not recorded and are not transferred to regulatory authorities;
  • Money can be cashed at any time;
  • Commissions are less than cryptocurrency exchanges.

Here is what one of the investors said about this:

“I do not know what the government will do inregarding crypto regulation. This can happen tomorrow or at any other moment, that is unpredictable. I have invested in these assets a significant amount sufficient to buy a luxury apartment in Moscow. I do not want to lose her overnight. Therefore, I try to cash money in parts.

I go to gaming sites because I know thatmy identity will not be known to anyone. Then I invest a small amount, play a game for the minimum amount, and then cash everything in fiat to another digital wallet. I regularly receive transfers from my digital wallet to a bank account, so the bank does not have any questions, since my monthly transactions are small.

"It takes time to cash out the entire amount, but this is the only way that guarantees the safety of my investments."

A similar situation is probably observed in Europe, where there is also no uniform legislation, and only certain countries, such as France, are taking steps to adopt their own laws.