According to a senior industry executive, the Russian cryptocurrency market has grown to several hundred billions of dollars despite not having sufficient regulation.
Sergei Khitrov (founder of the Russian cryptocurrency event Blockchain Life) gave a keynote address on the state regulation of cryptocurrency in Russia at the VII Blockchain Life Forum, Moscow, Oct. 27.
Khitrov based on his industry knowledge and market insights, estimated that the Russian crypto market was worth more than $450 billion or 40 trillion rubles. Khitrov also stated that Russian crypto-businesses could generate up to 284 billion rubles ($4 Billion) in taxes annually if the Russian government provides more relaxed regulations.
However, Russian regulators continue to ignore the interests of the industry over the past few years. Local crypto businesses can do nothing but operate illegally or flee into other jurisdictions to survive, Khitrov explained to Cointelegraph.
Crypto services cannot be legally provided if there are no regulations that consider the needs of the crypto community. He stated that it is not profitable for businesses to get out of the shadows.
Khitrov said that not one Russian cryptocurrency exchange was established in Russia.
“We are aware of many crypto exchanges that have Russian roots. However, these exchanges are not registered or based in Russia.”
According to the executive, he has been committed to negotiating crypto legislation and has been aware that local crypto businesses and people have fled to other jurisdictions. Khitrov claims that the Russian government tried to find ways to bring large crypto businesses home, but failed to do so.
He stressed that the Russian crypto-community has shown a “complete failure to understand how to tax crypto.
Related: RACIB chief says Russia does ‘absolutely Nothing’ to regulate crypto
The Blockchain Life forum was established in 2017 and is a major Russian cryptocurrency conference that takes place twice a years. The Blockchain Life forum was held in Moscow on October 26 and 27, and brought together over 5,000 participants and speakers. Industry representatives, state officials such as Dmitrii Marinichev, Russian internet ombudsman, and Alexey Minaev from the Ministry of Economic Development were also present.
This forum was attended by executives from global crypto exchanges such as Huobi and Exmo, as well as local entrepreneurs who mainly represent retailers of Chinese Bitcoin mining hardware. Binance NFT, the NFT marketplace and platform that operates the largest crypto exchange in the world, hosted a nonfungible token auction (NFT).
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.