Russia appears to be leading the way in terms of creating a legal and regulated cryptocurrency exchange.
The country’s Deputy Prime Minister, Yury Trutnev has said that the ‘Voskhod trading platform’ has been granted permission from the central bank for financial traders and private investors to work with cryptocurrencies.
Energy companies to begin Bitcoin mining?
Mr Trutnev also talked about the possibility of Bitcoin mining operations partnering with companies from Russia’s energy sector. With certain regions of the country producing too much electric, and with no means of distributing the excess, Trutnev believes Bitcoin mining in those areas is a potential solution.
He continued by saying that “mining operations” presented a fantastic opportunity for Russia’s ever-growing tech-savvy generation to create start-up companies to join cryptocurrency industry. These comments follow recent press releases from Gazprom and Evrosibenergo, two influential companies in the energy sector, that they are exploring options to partner with regional Bitcoin miners.
Not everyone wants cryptocurrency trading in Russia
A statement issued by the Bank of Russia on Monday said that trading in cryptocurrencies should not be allowed (in Russia) at this present time.
The Bank believes that due to the anonymity which comes with such decentralized entities, it is impossible to know the origin of the fiat money used. This raises concerns of money laundering and other illegal activities.
With there being a strong mixture of parties for and against the inception of cryptocurrency trading in Russia, this matter has now arrived at parliament’s door. Government officials are currently debating ways to regulate the industry and a new draft law is expected to be in place by the end of the year.
Yet, while Russia is seeking ways to regulate ICOs and cryptocurrencies, China has gone the other way. It has banned start-ups from raising cash using the ICO model with The People’s Bank of China demanding that all current ICO operations be stopped immediately.
The regulators in China also stressed that digital money cannot be used as a means of paying for a product or service because it does not view Bitcoin, Ethereum or any other altcoins as legal tender.