When we talk about cryptocurrency development and adoption, Russia is one of the top countries to regulate. An approximated denoting; the government can get many financial benefits from levying taxes on cryptocurrency transactions. 

Related Reading | U.S. Introduced Crypto Tax Fairness Act to Adopt Crypto As Payment Method

Kommersant, highlighted while reporting to the MEXC cryptocurrency exchange data, shows that Russian citizens are not hastening to trade in the market but actively storing in crypto wallets. Data shows that 60% of Russian Bitcoin wallets are in an ”Inactive” position. 

Individuals perceive cryptocurrency as a long-term investment. But unfortunately, it is also a fact that regulatory authorities make digital assets investments very harsh through painful market regulations.

 According to Nikita Soshnikov, working as director of Alfacash cryptocurrency, It is observed that during the last 18 months, the ratio of “Inactive” Bitcoin wallets has grown, and Russia ranks one of the top five nations in this data. 

Bitcoin Wallets Trading Analysis

It has been noticed that there was no trading activity in 80% of crypto wallets during the recent last four months. At the same time, 68% of crypto wallet users visited their accounts just only almost three times a year, which shows they remember their login passwords. 

Borenius Russia Managing Partner Andrei Gusev stated:

The lack of movement on them indicates that Russians do not consider cryptocurrencies as a means of payment, but tend to see them as a way to enrich themselves over a long distance.

In the same period, ENCRY Foundation Founder Roman Nekrasov observed that investors are inclining the strategy to hold cryptocurrency for the long term. As a result, the system has gained popularity during the last few years.  

Nekrasov assumes many Russians are believed to have Bitcoin trading since its early days. Now recent traders who started trading during their first five years developed a strategy to hold cryptocurrency assets for a long time without any selling plan.

Russian Proposal To Regulate Crypto

Russian authorities also have plans for cryptocurrency regulation. According to an original plan made on February 11, 2022, the Russian government and central banks have agreed to create a draft on February 18, 2022, to regulate the circulation of cryptocurrencies. 

Related Reading | Former Russian President Rejects Push By Central Bank To Ban Crypto

The Russian Finance Minister is also discussing the transition period to levy taxes on the crypto earnings transactions. As a result, the country could reap up to 1 trillion rubles ($13B) per year from tax collectors eager for new revenue streams. And this doesn’t even take into account all of those people in Russia investing their hard-earned money into Bitcoin and other virtual coins — analyst estimates say there’s probably more than many countries put together right now.

Many people think Russians would not abandon their cryptocurrency in spite bill passed. 

The reason is that they desired to keep their wealth hidden. The head of EXANTE, Janis Kivkulis, remarked that cryptocurrencies in Russia “will remain an iceberg, 90% of which is hidden from view.”

                    Featured image from Pixabay, chart from Tradingview.com