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Cryptocurrency business is massively fleeing Russia

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Inside a Russian cryptocurrency farm

Cryptocurrency business is massively fleeing Russia

Cryptocurrency business is massively fleeing Russia
CONTENT

  • Cryptocurrency business is massively fleeing from Russia

  • Blockchain technologies are no longer popular in Russia

  • Large Russian business "froze" blockchain projects

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Russia has begun to lag seriously behind other countries in the world in the development of blockchain technologies and cryptocurrency business due to regulatory uncertainties. Companies are massively moving their offices outside the Russian Federation.

Cryptocurrency business is massively fleeing Russia

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The cryptocurrency business is leaving Russia to avoid the risks associated with regulatory requirements and, possibly, criminal prosecution. After the adoption of the bill “On digital financial assets”, which introduced a number of restrictions on trade, exchange of cryptocurrencies, businesses began mass migration to other regions. This was stated by Yuri Brisov, member of the Commission on the Legal Support of the Digital Economy of the Ministry of the Russian Federation.

“Russian clients turn to us mainly with a request on how to transfer business from Russia to a jurisdiction where it is possible to work with crypto and blockchain legally. Fortunately, such jurisdictions are sufficient. Russia is beginning to lag far behind the rest of the world in this direction as well, ”the lawyer states..

As Brisov emphasized, the crypto business in Russia was looking forward to the adoption of the draft law “On digital financial assets”. Everyone expected him to legalize the crypto circulation in the country. However, the new document further confused the companies. As a result, large projects that planned to launch their own tokens, issue loans in digital assets, postponed their projects until better times..

For example, one of the leaders of the metallurgical industry, Norilsk Nickel, has repeatedly spoken about his desire to tokenize metals and sell them on world markets in digital form. Vladimir Potanin announced that the metallurgical holding will issue its own tokens, which will be backed by a specific metal. The first stage will generate tokens backed by palladium, cobalt and copper. And later the company will issue tokens, which will be backed by other metals. However, after the adoption of the draft law “On digital financial assets”, the issue of tokens had to be postponed. It is not yet clear whether Norilsk Nickel will be able to issue, and most importantly, sell tokens on the Russian and international markets.

Blockchain practically does not develop in Russia

A similar trend is observed in the blockchain technology segment. And if in 2017, in the wake of the global hype, blockchain solutions were actively implemented at Russian enterprises, then in 2020 there is a significant rollback in this area. According to MINDSMITH estimates, the number of cases of practical implementation of blockchain in the financial sector in the world is decreasing: 99 cases in 2019 against 180 in 2017. At the same time, the number of investment rounds held, on the contrary, is growing: from 21 to 27.

Experts explain this dynamics simply: companies stopped hyping, and began to thoughtfully approach the implementation of blockchain solutions..

Cryptocurrency business is massively fleeing Russia

“There are more than 150 players in this industry in our country, and there are already enough vivid examples of blockchain use in Russia. For example, elections to the Moscow City Duma last year were based on this technology. Blockchain is already being used and launched in various projects of Sberbank, Alfa-Bank, X5 Retail Group, VTB, Russian Railways, Rosseti and other largest companies in the country, “said Vladislav Bulochnikov, founder of the cryptocurrency p2p platform Chatex.

In general, Russia shows negative dynamics in the implementation of blockchain technologies, despite the fact that the whole world is striving to popularize this direction..

Analysts at Million Insights have prepared a report according to which by 2025 the blockchain technology market will exceed $ 57 million and will grow rapidly every year. The main consumers of blockchain services will be such sectors as healthcare, finance, international settlements, media, logistics and government..

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