Even after the restricted cryptocurrency trading, the demand for over the counter (OTC) investment in Bitcoin and other digital assets in Russians is increasing. In Moscow, the daily trading volume of major cryptocurrencies such as Bitcoin and Ethereum has touched the mark of $50 million. Though the trading volume is relatively small as compared to other crypto exchanges but significant in spite of regulatory uncertainties in Russia.
Few countries such as Russia, China, India, and Bangladesh have restricted cryptocurrency trading. According to local laws, trading or investing in cryptocurrencies is not legal in Russia. In Russia, cryptocurrencies are considered as properties, if the capital invested in the cryptocurrencies comes from the legitimate sources, the citizens of Russia can hold the cryptocurrencies According to a law firm Forward Legal, it is an agreement between buyer and seller. If the transactions are not prohibited they are allowed.
Russia has drafted three legislations for cryptocurrencies and related businesses. These legislations are drafted to address the legality of exchange operators and crypto trading. The approval of these bills is postponed to the end of the year 2018. Until the government will approve the crypto businesses the crypto industry will not see a growth in Russia. Even after the regulatory uncertainties, the crypto market is steadily growing in Russia. Though it is legal for the residents to invest in cryptos it is still uncertain whether the companies are allowed to operate crypto trading platforms or not. With just 20 active crypto investors, the local OTC platforms are making hundreds of thousands of dollars by charging 1.5 to 2% f commission fee from the crypto investors.
China has strictly prohibited the trading of cryptocurrencies. In China, even it is not legal for residents as well as citizens to trade or hold cryptocurrencies. The government has also eliminated the connections between fintech platforms such as Alipay and OTC platforms in the mainland to restrict the crypto trading. Though the Chinese government is trying its best to restrict the crypto trading because of the presence of the offshore market, it is quite difficult to completely ban the cryptos. Chinese authorities made it difficult for the investors to allocate their holdings in yuan to digital assets.
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