Russia: Bitcoin Activity Rising Despite Strict Law Proposals

Wednesday 11 July 2020, 11:12 PM AEST - 1 month ago

A branch of the Russian federal government has recently published a draft of new litigation called On Digital Financial Assets, which is focused on enforcing strict cryptocurrency laws in the country. The legislation has not been approved yet and has been in discussion since 2018.

The new laws define Bitcoin as property but not legal tender, and propose, among many other things, that Bitcoin (BTC) miners register as individual companies so they can be appropriately taxed. President Putin is planning on developing and revealing a new tax for Bitcoin miners by July 1, but many are skeptical about the governments ability to regulate the cryptocurrency industry.

In spite of this recent development toward increased regulation of digital assets, Russian peer-to-peer Bitcoin transactions have spiked significantly.

In this article, Russias legislative approach toward cryptocurrencies will be discussed and compared to the attempts made by other governments to understand and regulate the industry. First, lets take a look at the recent popularity of Bitcoin in Russia.

Related: One Step Forward and One Step Back: Why Is Russias Crypto Regulation Treading Water?

The popularity of cryptocurrency and financial technology

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Debit and credit cards, online banking and the popularity of digital receipts with the simple snap of a picture on your phone may turn paper money and other paper documents obsolete very soon. The free investing app Robinhood caused a surge of millennial investors to join around the coronavirus pandemic, rocking the United S ...

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