Why is it time to invest in cryptocurrency?

Publication date: 08 Aug 2021

In September 2021, the State Duma of the seventh convocation will suspend its activities in Russia. The deputies were elected in September 216 and over four years have developed and adopted several dozen laws. Even now it is possible to summarize some of the results.

“We have worked well on digital laws, and we have protected our citizens quite well,” stated Anatoly Aksakov, chairman of the State Duma Committee on Financial Market of the Russian Federation.

Digital laws in Russia – who can benefit from them?

In 2020, the Law on Digital Financial Assets was adopted. Together with the previously adopted laws of the investment platform, the marketplace and the law on the possibility of using geometric data for remote identification, it will allow Russians to receive financial services (banking, insurance, stock market) remotely.

Several laws useful in terms of the protection of investor rights were also developed and adopted. First, there was the law on categorization of investors, then – the law saying that complex financial instruments must be received by unqualified investors after testing and must obtain maximum information about the risks taken by the investor. If a financial institution doesn’t provide full information to the investor, the Central Bank has the right to buy back the instrument sold with compensation for all the losses incurred by the investor in acquiring the financial product.

The last adopted law concerns the blocking of websites of illegal lenders, financial pyramid schemes, and phishing sites. The Central Bank can quickly intervene in the situation and block the operation of such a site, respectively, preventing them from stealing money from users.

Also, adopted documents that will allow the development of the new Russian currency – the digital ruble.  The Central Bank began developing and testing a system whereby any citizen can open an electronic wallet in the Central Bank’s information system, where money will be awarded, it will be possible to pay with it through an application without the intermediation of banks.

What laws have made casinos safer?

The shadow financial market in Russia existed for many years, and for more than 10 years the state made attempts to influence it. But all the measures taken, led only to the complication of the transfer modalities, for each regulator’s action there were several bypass schemes ready.

But six months ago, the Bank of Russia in partnership with other government agencies introduced a set of measures that could stop the illegal cross-border flow of funds in legal currencies.

The current set of measures to block illegal payments was of a systematic and well-thought-out nature and was carried out in several stages. Let us remind you how it was:

• In the winter of 2020-2021 payment systems received fines and restrictions: Qiwi – a ban on international transfers, “YooMoney” – semi-annual sanctions. Read more: What was happening to the payment systems in Russia?
• In July 2021, the fiscal authorities are legally allowed to block online platforms suspected of cooperating with gray-market gambling.  Also, a special register of banned institutions was created, which is not allowed for financial institutions to cooperate with and transfer money to them. 

All these measures, to varying degrees, were applied to large financial structures suspected of cooperating with gray-market casinos and bookmakers.

The situation on the Russian gambling market has changed. Many casino sites have simply closed, they are not available online.

But there is only one loophole left – transactions in digital currencies. Larger players in the gray market of gambling moved payments in crypto. Another way for illegal casinos to operate has appeared: they have returned to offline, the practice of mobile payment reception appeared in the largest cities of the Russian Federation.

However, some operators wished to legalize – they received licenses and can safely work in the legal framework. Find out how the gambling market operates in Russia now?

Cleaning the financial market will allow to limit the illegal activities of gambling operators as much as possible.

But there are still cryptocurrency transactions that are more difficult to control.  The crypto market will grow and develop not only in Russia, but also around the world.  For example, the Russian Association of Cryptoindustry and Blockchain (RACIB) is preparing a project that will bring miners to the country with their equipment.  And Kazakhstan has launched a project that will allow banks to open accounts for cryptocurrency organizations. This means, it is profitable to invest in this asset now! More and more people understand where to invest, and this gives new great opportunities!