That cryptocurrencies are part of the new way of looking at financial transactions is nothing new, but for Russians, their rather belated regulation represents a new era. After much negotiation, the Russian government and its Central Bank agreed to regularize cryptocurrencies.
However, there is still an impasse when it comes to recognizing them as digital currencies or financial assets. In this way, the Russian government will regulate digital currency exchanges for all financial market participants. With this, the objective is to control the flow of cryptocurrencies and tax them.
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Regarding the classification, the Russian government has not yet reached a consensus. Throughout the document, he deals with the term “financial assets”, but the media speculates that executives understand cryptocurrencies as analogous to coins.
See more: Government to Ban Private Cryptocurrencies, Including Bitcoin
The announcement by the Russian government was quite curious, given that, a few weeks ago, the Central Bank pointed to the spread of cryptocurrencies as something negative. On the other hand, thinking about economic reasons, the Executive branch has always been on the side of cryptocurrencies.
It is estimated that Russian citizens alone hold about 12% of the world's cryptocurrencies. That represents roughly $214 billion worth of cryptocurrencies, a third of the total market capitalization of many companies. This is an amount of money that could mean a lot for Russian coffers.
Another factor is that the lack of regulation would give rise to several illicit transactions, the increase in cases of fraud and the destabilization of the sector. Thus, Russia is increasingly closer to the West and farther away from China, which recently banned mining and cryptocurrency transactions.
The United States and the European Union are betting on the path of regulation through laws that protect investors and the taxation of transactions through taxes. The European Union, however, is still taking the situation slowly, as the full regulation of the bloc is still being prepared and will not come into force until 2024.
Regulating cryptocurrencies is the right path taken by states. Thus, it is possible to maintain the fiduciary power of the state, protect citizens from fraud and have control over all types of economic transactions.
In addition, the state can create its own digital currencies, centralizing power. China, for example, is already leading in this regard, with the digital yuan at the Beijing Olympics. The United States, in turn, is already considering the possible creation of the dollar in a digital version.
