The Russian Government Acknowledges Crypto as a Form of Payment

Cryptocurrency is now a hot selling investment model. The primary purpose of cryptos was to enable peer transactions easier. But with the evolving technology and growing interest, today crypto is an investment. If you are interested in bitcoin trading, go to the bitcoin buyer official site, which is a complete guide to crypto trading.

Understanding Crypto Investments

Investors from across the globe can buy and sell cryptos. These tokens are not pegged to any traditional currency. This means you can buy cryptos in one country and convert the same to another currency. As of today, there are more than 14k+ cryptos in the investment market. Most crypto exchanges have been able to trade close to 8k tokens for trading purposes.

The total market capitalization of cryptos has increased by more than $3 trillion. A decade down the line, the market has been performing well. There have been huge spikes in prices and heavy losses as well. The fundamental rule of crypto investment is to ensure that you invest only what you are ready to lose.

Crypto as a form of payment

Understanding Crypto Investment Globally

While cryptos have been considered an effective investment model. Many countries are yet to provide cryptos with a legal tender status. In fact, economists have always argued that this investment model could harm society.

There is a lack of monitoring of any user transactions in crypto. Central banks or regulatory agencies are not involved in tracking individual user transactions. This could also make way for cryptos used for money laundering and anti-terrorism.

Russia and its Love-Hate Relationship with Cryptos 

Like any other country, Russia also had its share of a love-hate relationship with cryptos. History has made it impossible for the country to adopt technology easily. The country has invested in developing a strong pool of computer experts. There are also blockchain specialists, and training organized for skilled developers.

In recent times, the country has been able to produce more than fifty blockchain products. Russian citizens have also been actively investing in initial coin offerings. As per the recent surveys, it is estimated that more than 11% population has cryptos. This means approximately 20 million Russians have tried their luck with crypto investments.

Like any other country, the Russian government also had a conflicting opinion about crypto investments.

Tax Regulation on Cryptos

With the growing interest, the Russian government did change its attitude towards crypto. As the first step to this, the country came up with its tax regulation.

The Federal government has proposed a tax law that will govern the taxation regimen. The Russian central bank has proposed to watch all crypto investments. it is also estimated that the government will be able to generate more than 12 billion roubles through tax.

It will add up as extra income to the country. Such steps will also allow for more investments in crypto products and services. The government has currently proposed to impose a 13% tax on individual income groups. For companies involved in crypto investment, there will be 20% taxation.

Russia’s Move to Recognize Crypto as Currency

Yes, you heard it right. After all the pushes and pullbacks, Russia is leaping forward. The country is working towards making crypto tokens an official currency model. Cryptos will take legal status and may be used as a tender for exchange.

The government and the bank of Russia have got into an agreement to enable this service to citizens. Both the governing bodies are working on a draft law. The law will clearly articulate the purpose of this law along with its scope and other regulations.

The report has made it clear that cryptos can be used only for legal transaction purposes. This means crypto payments can be made to those entities and agencies governed by local laws. There will also be a banking system involved to track these transactions.

Crypto as a form of payment

The reports also suggest that the Russian President is backing the current changes. Also, any individual with crypto investment beyond 60k roubles needs to declare it. It can constitute a criminal offense for the failure of an individual to disclose such assets.

With this step, Russia will move a step ahead in embracing cryptos. Also, this move will open the arena for many other countries to consider the same. While many countries are open to crypto investment, it is still not an official tender.