Russian crypto market worth roughly $500B despite bad regulation
The Russian cryptocurrency market has increased to hundreds of billions of dollars despite the absence of enough cryptocurrency rules, according to a major industry executive.
Sergei Khitrov, the founder of the Russian cryptocurrency event Blockchain Life, gave a keynote on the state of cryptocurrency guidelines in Russia at the VII Blockchain Life Forum in Moscow on Oct.27.
Based on the industry insights and knowledge of the market, Khitrov estimated the Russian crypto market to be worth as much as 40 trillion rubles, or more than $550 billion. He even claimed that the Russian crypto sector could produce as much as 284 billion rubles ($4 billion) worth of taxes each year.
However, the Russian lawmakers have kept continued ignoring the industry's interests over the past several years. Local crypto businesses could just keep but continue operating illegally or flee to another jurisdiction in order to survive, Khitrov said.
"Without regulations that take into account the interests of the crypto community, crypto services won't be legally provided. it isn't beneficial for the business to step out of the shadows," he said.
Khitrov stated said, Not a single home-grown cryptocurrency exchange has been officially established in Russia, despite the significant market size. “We know a lot of crypto exchanges with Russian roots, but, unfortunately, these exchanges are either not officially registered or just based in other jurisdictions,” he said.
Khitrov said that he's been deeply committed to arranging crypto enactment with different government authorities, and regulators have been well aware of local crypto communities and businesses escaping to different jurisdictions. As indicated by Khitrov, the Russian government has been searching for ways of bringing huge crypto businesses home yet has failed to satisfy the business' needs. He also stressed that the Russian crypto community has so far demonstrated a "complete failure" to understand how to pay taxes for crypto.
Founded in 2017, the Blockchain Life platform is a significant Russian cryptocurrency occasion occurring double a year. The most latest Blockchain Life forum occurred in Moscow on Oct. 26 and Oct 27, uniting more than 5,000 participants and speakers, including industry representatives and state authorities like Russian internet ombudsman Dmitrii Marinichev and the Ministry of Economic Development's Alexey Minaev.