Cryptos are a very moot subject in Russia. Some hype it and gorge in unbridled debauchery, establishing projects and profiteering from their downfall, setting off into the sunset with investors’ money, while others simply fear it. The fact is that there is no sound regulation at the moment on cryptos in Russia and the framework for their development is only now being established.
The Law on the Cryptocurrencies in Russia of 2015 provides for the liability of individuals and legal entities to distribute cryptocurrency, which is also called a money surrogate in the text of the law, as well as responsibility for the creation, distribution and sale of cryptocurrency software in the form of a fine of 5 to 20 thousand rubles.
In the event of a repeated violation of the law on cryptocurrency in Russia, this may be equated to fraud, and the perpetrator will face the maximum penalty of imprisonment of up to three years.
Punishment is provided for those who intentionally disseminate information that allows issuing cryptocurrencies. There are numerous portals devoted to earnings on the internet, as well as sites offering cooperation on partner programs related to the cryptocurrencies. Careless publication on a website or blog can be a serious problem. Therefore, it is worthwhile to apply common sense at times.
The official wording concerning such an unpopular phenomenon as cryptocurrency in Russia is as follows “Its use can be equated to questionable operations.” This is how the Ministry of Finance formulated this in its appeal to the people, calling for the refusal of using Bitcoins and its analogues.
In fact, in unofficial sources, there is a version that cryptocurrencies in Russia whose ban is so strongly lobbied by many officials can be used as a means for money laundering. Given the level of corruption, such suspicions, of course, can be justified theoretically, but practice shows that those who deal with money laundering are not at all hampered by the existence of a law prohibiting the use of cryptocurrency in Russia. The recent release of a bill allowing officials not to disclose the crypto assets opens many doors for corruption, taking it to a whole new level.
Cryptocurrency will not be legal soon enough in Russia. The thing is that disputes have yet to be resolved about which public institution should be responsible for using cryptocurrencies.
Initially, the process was that the Central Bank was supposed to deal with the legitimate use of cryptocurrency. However, its representatives say that the function to track use of funds is not within the competence of the CBRF, and whose competence it is has yet to be resolved. The fact remains that cryptocurrency in Russia is equated to fraud, while in other countries it is quite a legal way of earning money.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.