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Blockchain & Cryptocurrency
March 2019 www.intellinews.com I Page 24
risks of buying virtual currencies. The ESAs warned consumers that virtual currencies are highly risky and unregulated products and are unsuitable as investment, savings or retirement planning products.
On the other hand, cryptocurrencies are entering legal frameworks slowly but surely in some parts of the Balkan region. The latest example is
Cryptocurrency exchanges eye Russia for expansion despite sanctions
EWDN in Moscow
Sanctions imposed by governments as part
of geopolitical struggles do not always filter through to under-regulated industries. Ambitious businesses covet every opportunity for expansion and diversification. That seems to be the reason why a growing number of crypto exchanges are turning their attention to Russia and its diaspora, despite the disapprobation this risks drawing from US officials, reports Bitcoin.com.
Ever since the annexation of Crimea, Russia’s re-emergence as an aspiring military, political and economic power on the world scene has been met with an ever-expanding list of western sanctions, the most wide-ranging containment measures against Moscow since the Cold War. They’ve undoubtedly taken their toll on the Russian economy and dissuaded many foreign investors. However, that’s not necessarily the case with
the crypto industry, which is looking to expand operations after a prolonged downturn. Major digital asset exchanges have been focusing on Russia and the greater Russian world, despite the sanctions. According to a recent report, interest
Romania where the authorities amended the tax laws making it possible to start taxing gains from bitcoin investments at a rate of 10%.
The improved fiscal code legislation categories earnings generated from buying and selling cryp- tocurrencies as “income from other sources” and they are therefore subject to income tax, bitcoin. com reported on January 22, citing local media.
in cryptocurrencies there has remained relatively stable throughout the past year.
Binance, the largest exchange by daily trading volume, has not restricted access to its platform for Russian users, despite cutting off traders
from a number of other countries under US sanctions such as Iran and Belarus. What’s more, the Chinese crypto company hired a special representative for Russia, Gleb Kostarev, who recently told Forklog that the Russian Federation and the CIS countries are some of the largest and most important markets for Binance, with great potential for future growth. The platform’s website is already available in Russian and Russian- language support is offered to VIP clients.
Establishing a Russian office is in Binance’s plans but the company prefers to first see comprehensive regulations for the crypto industry in the country. But Huobi, which is the fourth largest crypto exchange, is evidently not worried by the lack of regulations. It has already set
up shop in Russia and launched a dedicated