Russia to View Bitcoin as a Foreign Currency
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Recent reports suggest the Russian government and the Bank of Russia have reached an agreement on regulating cryptocurrencies. Initially, Russia’s central bank proposed banning cryptocurrencies as well as crypto mining.
Fitch credit rating agency warned in a statement that a complete ban on cryptocurrencies ‘also blocks off potential revenue-generating activity, and could set back Russian banks’ engagement with the technologies underlying the cryptocurrency sector. If this slows the spread of crypto-driven innovations that, for example, improve the speed and security of payments or asset
liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term via tokenisation, it could over time weaken this aspect of the Russian banking sector’s operational environment relative to peers’.
President Putin said that the government will work with the central bank in order to reach an agreement. He added that Russia has competitive advantages in the crypto mining sector (possibly linked to lower electricity consumption costs).
How Will Russia Regulate Cryptocurrencies?
According to the Russian news publisher, Kommersant the draft law will be presented by 18 February 2022. It has been suggested that cryptocurrencies may only be available via the banking system or licensed intermediaries. Full identification may be required.
The highlight of the news is that bitcoin will be recognized as a foreign currency as opposed to a digital asset.
Transactions above 600,000 rubles (approximately $8,000) must be declared. Any transactions that are made outside the legal framework will be considered as a criminal offence. Until 18 February, the Bank of Russia will present its amendments or in a separate bill.
Some of the bitcoin regulations may only be implemented in the second half of 2022 or in 2023.
The Russian Ministry of Finance estimates that Russians hold 12 million crypto wallets that are worth around 2 trillion rubles. These estimates do not factor in the criminal sector.
A Bloomberg report suggests that Russians are holding over 16 trillion rubles of cryptocurrencies. According to the the Bell, the Russian government may collect as much as $13 billion per year for taxing cryptocurrencies. Russia is currently the world’s No.3 center for
crypto mining
Crypto Mining
Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the solving of complex mathematical equations through the application of cryptographic hash functions. The crypto miner who can solve the solution first can authorize that cryptocurrency transaction while also receiving small cryptocurrency payments in exchange for services rendered. Crypto mining is competitive, tedious, and generally requires that miners possess advanced computers with specialized hardware, increased processing power, and an unwavering internet connection. Electricity, cost of internet, and computing hardware make up the bulk of the expenses that affect the net revenue created through crypto mining. Most cryptocurrency miners generate no than a couple of dollars per day. To perform crypto mining, miners must possess computer hardware that is accompanied by a graphical processing unit (GPU) chip or an application-specific integrated circuit (ASIC). Recommended computer brands include both Windows and Linux since non-Windows systems tend to have a difficult configuration process. Once acquired, crypto miners must ensure that they have a constant internet connection, have a means to cool-off hardware, possess a legitimate cryptocurrency mining software.Miners also often require membership with both online mining pools and cryptocurrency exchanges.
Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the solving of complex mathematical equations through the application of cryptographic hash functions. The crypto miner who can solve the solution first can authorize that cryptocurrency transaction while also receiving small cryptocurrency payments in exchange for services rendered. Crypto mining is competitive, tedious, and generally requires that miners possess advanced computers with specialized hardware, increased processing power, and an unwavering internet connection. Electricity, cost of internet, and computing hardware make up the bulk of the expenses that affect the net revenue created through crypto mining. Most cryptocurrency miners generate no than a couple of dollars per day. To perform crypto mining, miners must possess computer hardware that is accompanied by a graphical processing unit (GPU) chip or an application-specific integrated circuit (ASIC). Recommended computer brands include both Windows and Linux since non-Windows systems tend to have a difficult configuration process. Once acquired, crypto miners must ensure that they have a constant internet connection, have a means to cool-off hardware, possess a legitimate cryptocurrency mining software.Miners also often require membership with both online mining pools and cryptocurrency exchanges.
Read this Term.
According to some surveys the majority of crypto holders in Russia are aged between 25 and 44. Bitcoin (BTC) is their preferred choice.
The Digital Ruble Is Being Tested by 12 banks
12 Russian banks are currently testing the Central Bank Digital Currency (CBDC), Russia’s first digital ruble. In the first phase, C2C payments are tested by the banks.
Some of the banks that are participating in the pilot are Promsvyazbank, Tinkoff Bank, SberBank and Rosbank. In the next phase, smart contracts will be tested in the Federal Treasury. Other forms of crypto payments will be tested including Business-to-Business (B2B), Business-to-Government (B2G), Consumer-to-Business (С2B) and more.
Recent reports suggest the Russian government and the Bank of Russia have reached an agreement on regulating cryptocurrencies. Initially, Russia’s central bank proposed banning cryptocurrencies as well as crypto mining.
Fitch credit rating agency warned in a statement that a complete ban on cryptocurrencies ‘also blocks off potential revenue-generating activity, and could set back Russian banks’ engagement with the technologies underlying the cryptocurrency sector. If this slows the spread of crypto-driven innovations that, for example, improve the speed and security of payments or asset
liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term via tokenisation, it could over time weaken this aspect of the Russian banking sector’s operational environment relative to peers’.
President Putin said that the government will work with the central bank in order to reach an agreement. He added that Russia has competitive advantages in the crypto mining sector (possibly linked to lower electricity consumption costs).
How Will Russia Regulate Cryptocurrencies?
According to the Russian news publisher, Kommersant the draft law will be presented by 18 February 2022. It has been suggested that cryptocurrencies may only be available via the banking system or licensed intermediaries. Full identification may be required.
The highlight of the news is that bitcoin will be recognized as a foreign currency as opposed to a digital asset.
Transactions above 600,000 rubles (approximately $8,000) must be declared. Any transactions that are made outside the legal framework will be considered as a criminal offence. Until 18 February, the Bank of Russia will present its amendments or in a separate bill.
Some of the bitcoin regulations may only be implemented in the second half of 2022 or in 2023.
The Russian Ministry of Finance estimates that Russians hold 12 million crypto wallets that are worth around 2 trillion rubles. These estimates do not factor in the criminal sector.
According to some surveys the majority of crypto holders in Russia are aged between 25 and 44. Bitcoin (BTC) is their preferred choice.
The Digital Ruble Is Being Tested by 12 banks
12 Russian banks are currently testing the Central Bank Digital Currency (CBDC), Russia’s first digital ruble. In the first phase, C2C payments are tested by the banks.
Some of the banks that are participating in the pilot are Promsvyazbank, Tinkoff Bank, SberBank and Rosbank. In the next phase, smart contracts will be tested in the Federal Treasury. Other forms of crypto payments will be tested including Business-to-Business (B2B), Business-to-Government (B2G), Consumer-to-Business (С2B) and more.
Cryptocurrency
