Anatoly Aksakov, head of the Financial Markets Committee in the Russian parliament, reiterated a warning for cryptocurrency investors and insisted that Russians with coins declare their digital assets. The parliamentarian also called for comprehensive regulation of crypto mining and taxation.

Aksakov Warns Russian Crypto Investors They Can Lose Everything

Russians have invested 5 trillion rubles (about $67 billion) in crypto and some of them could lose it all because cryptocurrencies are not backed by anything, Anatoly Aksakov, a key MP, said recently. in the regulation of the Russian crypto space. Many of these people are unqualified investors and as such pyramid schemes are likely to occur, added Aksakov, who heads the Financial Markets Committee at the State Duma, the lower house of parliament.

Repeating warnings previously issued in an interview with the Duma parliamentary TV channel, the Russian lawmaker pointed out that there is no stability in the digital currency market. Crypto prices can quickly move 20-30% one way or another, Aksakov noted and clarified:

Therefore, it is important to regulate the market, to protect, first of all, our citizens, to establish taxation and certain rights for the owners of cryptocurrency. However, they must be identified.

The statement comes after a similar call was recently made by the head of the Russian Federation Investigative Committee, Alexander Bastrykin. Last week, Bastrykin, who reports directly to President Putin, said cryptocurrency should not remain anonymous, adding that mandatory identification of all crypto users should be introduced in Russia.

Anatoly Aksakov is convinced that crypto assets should be reported to the state in order to prevent their use to finance terrorism, drug trafficking and the acquisition of weapons in the first place. Among other reasons, he mentioned taxation – Russians are obligated to pay taxes on their crypto profits even under current legislation, but a dedicated law on crypto taxation has yet to be passed by the Duma.

The high-ranking member of the house also spoke about the need to regulate cryptocurrency mining, which has spread in Russia both as a profitable business and as an alternative source of income for individuals. .

Aksakov pointed out that if the Russian authorities decide to legalize mining, it should be registered as an economic activity and taxed. He further insisted that differentiated tariffs for the energy consumed by mining companies be introduced in accordance with the system of cross-subsidies applied in Russia. This would lead to higher electricity tariffs for miners.

Last month, the leader of Aksakov’s “A Just Russia – for the Truth” social-democratic party, Sergei Mironov, urged the Bank of Russia to legalize the cryptocurrency market and speed up the introduction of the digital ruble. . According to him, the regulator’s tough stance on the issue is hampering the development of crypto technology and making it dependent on Western payment systems.

Various aspects related to cryptocurrencies, including mining, trading and taxation, remain unregulated in Russia even after the entry into force of the law “On digital financial assets” in January 2021. A working group set up in the Duma is currently preparing regulatory proposals to deal with these problems.

Do you expect Russia to introduce a legal requirement to identify cryptocurrency users? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons