According to a high-ranking Russian lawmaker, only a small portion of cryptocurrency transactions are for illegal purposes, and the use of cryptocurrency for illegal activities is mostly a myth.
According to Andrey Lugovoy, a member of the State Duma’s working group on cryptocurrency regulation, the illegal use of cryptocurrencies is largely a myth. “According to the largest cryptocurrency exchanges, no more than 4 to 6% of cryptocurrency turnover is involved in illegal activities,” the lawmaker told Parliamentskaya Gazeta.
Lugovoy, who is also the deputy chairman of the security and anti-corruption committee, stated that there are effective tools for identifying illicit wallets, such as those provided by blockchain analytics firms Chainalysis and Crystal. He went on to say that Russian IT developers are also working on domestic software that can detect “dirty” cryptocurrency.
“According to experts, cash accounts for 11 to 13 percent of the turnover in illegal activities,” the deputy said. He believes that the implementation of transparent crypto regulations in Russia, as well as the identification of digital currency users, will allow the government to combat income concealment.
This week, the parliamentary Financial Market Committee approved amendments that will allow cryptocurrency transactions to be taxed, while the Ministry of Finance backed proposals from Russian law enforcement agencies for the new “On Digital Currency” law. Both pieces of legislation, along with the law “On Digital Financial Assets,” which went into effect in early 2021, should be adopted during the Duma’s spring session to comprehensively regulate Russia’s crypto space.
In previous statements, Andrey Lugovoy has rejected calls to impose a blanket ban on crypto-related activities in the Russian Federation. He now admits that there is widespread agreement among Moscow’s government institutions that cryptocurrencies cannot be used for payment. Bitcoin and similar cryptocurrencies should be defined as property in the new legislation, he said in a recent interview.
At the same time, the member of the Duma emphasized that Russian authorities do not intend to impose any restrictions on the ownership of crypto assets. Cryptocurrency owners, on the other hand, will almost certainly be required to declare their digital holdings to the state.
According to Lugovohash rateegislative changes aim to bring millions of “grey” crypto miners out of the shadows. He emphasized Russia’s contribution to this market, which accounts for nearly 12% of the global Bitcoin hash rate and ranks third among mining destinations. Given the country’s cold climate and surplus of low-cost electricity, Russia has the potential to become the world’s mining leader, according to the lawmaker.
