More On: Russia
According to a high-ranking Russian senator, only a small percentage of cryptocurrency transactions are for unlawful purposes, and the usage of digital money in illegal operations is mostly a fallacy. Russia can become a worldwide leader in crypto mining, according to Andrey Lugovoy, one of the parliamentarians working on new crypto rules.
Russian programmers are developing software to detect 'dirty' cryptocurrency
According to Andrey Lugovoy, a member of the State Duma's working committee on cryptocurrency legislation, the usage of cryptocurrencies for criminal purposes is primarily a fantasy. "No more than 4 to 6 percent of bitcoin trade is involved in criminal operations," the senator told Parliamentskaya Gazeta.
Lugovoy, who is also the vice head of the committee on security and anti-corruption, pointed out that there are excellent methods for identifying wallets used for illegal purposes, such as those provided by blockchain analytics firms Chainalysis and Crystal. He went on to say that Russian software engineers are working on local software that can identify "dirty" bitcoin.
"Experts estimate that cash accounts for 11 to 13 percent of the turnover in criminal enterprises," the deputy said. He believes that introducing transparent crypto legislation in Russia, as well as the identification of digital currency users, will allow the government to combat income evasion.
The legislative Financial Market Committee adopted revisions this week that would allow for the taxation of cryptocurrency transactions, while the Ministry of Finance endorsed Russian law enforcement agencies' demands for a new legislation "On Digital Currency." Both pieces of legislation, together with the statute "On Digital Financial Assets," which went into effect in early 2021, should be enacted during the Duma's spring session to thoroughly govern the Russian crypto sector.
In prior pronouncements, Andrey Lugovoy has opposed proposals for a blanket ban on crypto-related operations in the Russian Federation. He now confesses that there is widespread agreement among Moscow's official entities that cryptocurrencies cannot be used to make payments. Bitcoin and similar cryptocurrencies should be classified as property under the new rules, he said in a recent interview.
At the same time, the member of the Duma highlighted that Russian authorities have no plans to impose any limitations on the holding of crypto assets. Owners of cryptocurrencies, on the other hand, will very certainly be required to register their digital assets to the government.
According to Lugovoy, the legislation reforms seek to pull millions of "grey" crypto miners out of the shadows. He emphasized Russia's contribution to the industry, which ranks third among mining locations and accounts for over 12% of global bitcoin hashrate. According to the congressman, Russia can become the world's mining leader due to the country's frigid temperature and plenty of low-cost power.
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