Illegal Use of Cryptocurrency Largely a Myth, Russian Lawmaker Says

Only a small share of cryptocurrency transactions have illicit purposes and the use of digital coins in illegal activities is for the most part a myth, a high-ranking Russian lawmaker has recently stated. Andrey Lugovoy, who is one of the deputies working on new crypto regulations, also said Russia can become a global leader in crypto mining.

Lugovoy, who is also deputy chairman of the security and anti-corruption committee, pointed out that there are effective tools to identify wallets that are employed for illicit purposes such as those offered by blockchain analytics firms Chainalysis and Crystal. He added that Russian IT developers are also working on domestic software capable of detecting “dirty” cryptocurrency.

At the same time, Russian authorities do not plan to introduce any restrictions on the ownership of crypto assets, the member of the Duma emphasized. However, cryptocurrency owners will likely be obliged to declare their digital holdings to the state.

The legislative changes also aim to bring millions of “grey” crypto miners out of the shadows, Lugovoy said. He highlighted Russia’s contribution to this market, with close to 12% of the global bitcoin hashrate, and ranking third among mining destinations. Given the country’s cold climate and surplus of low-cost electricity, Russia can become the world’s mining leader, the lawmaker elaborated.

Do you expect Russia to adopt a crypto-friendly regulatory framework and reconsider its stance regarding crypto payments? Tell us in the comments section below.

News Wire

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