Just like China and India, Russia is one of few countries who has banned the crypto trading. But there is an increase in the demand for over-the-counter (OTC) investment in Bitcoin and other cryptocurrency assets.
As per the local reports, the daily trading of major cryptos like Ethereum and Bitcoin has reached $50 million in Moscow alone on peak days which is comparatively less to major crypto trade centre but more in given regulatory uncertainty in Russia.
Investing in cryptocurrencies is not illegal according to local laws. Cryptocurrency is considered as properties, as long as the capital being invested into the digital currency market comes from a legitimate source, it is technically legal for citizens and residents of Russia to hold cryptocurrencies.
Aleksei Karpenko, a senior partner at the law firm Forward Legal, stated:
“There is a common rule – if specific transactions are not prohibited, then they are allowed. This is a matter of agreement between a buyer and a seller.”
The Russian government drafted three legislations around cryptocurrencies and crypto-related organizations, tending to the legality of trade operators and cryptocurrency trading. But, the approval of the three bills was deferred to the finish of 2018 and until the government definitely confirms business to work as cryptocurrency exchanges, the market will not see the emergence of regulated cryptocurrency exchanges.
Local OTC platforms that depend on global crypto trades to pool in liquidity into the cryptographic money market of Russia charge 1.5 to 2 percent as commission rates and can create a huge number of dollars in daily benefit, despite having around 20 daily active investors.
China, not like Russia, has entirely prohibited the trading of digital currency. Hence, it isn’t legal for local residents and citizens to purchase or hold digital currencies.
Financial authorities of China have made it troublesome for investors in the country to allocate their property in yuan to the digital asset. Though shell organization accounts in Hong Kong, investors have still possessed the capacity to put resources into digital currency, in large amounts.
“The recent warning and potentially increased monitoring of platforms are targeted at a cluster of smaller trades that had claimed to be foreign elements, however, working in China claims that they have outsourced their operations to a Chinese organization,” Hong Kong-based digital asset trade Tidebit executive Terence Tsang said.
Analysts expect the action of cryptographic money investors regions like India, China, and Russia to increment reliably in the years to come, paying little respect to the condition of approaches in the three nations.