The Wolf Den #433 - Russia Proposes Crypto Legislation
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. "Life moves pretty fast. If you don't stop and look around once in a while, you could miss it." - Ferris BuellerLife in crypto moves at the speed of light. Russia's central bank recently made headlines, proposing a full ban on crypto. The legislation would have included all interactions with crypto, including mining, which is wildly popular in the country. The FUD stemmed from a report titled “Cryptocurrencies: trends, risks, measures,” which cited threats to the country’s financial stability, purporting that the asset class was rife with fraud and scams. Skeptics pointed to a number of other times that the bank has made similar assertions, only to then be contradicted by Putin or another legislative body. Nevertheless, the threats felt real and few expected a complete 180-degree turn in just a few weeks.In a surprise twist, Russia and the central bank have agreed to draft legislation that recognizes cryptocurrencies as an “analog of currencies.” With this approval, cryptocurrencies will be allowed to freely move through the banking system and through licensed intermediaries. In other words, crypto is allowed, but under the watchful eye of Sauron, aka the regulators. The news also indicates that Russia is aware that it cannot ban crypto activity. The official statement read, “the complete absence of regulation of this industry, as well as the establishment of a ban, will lead to an increase in the share of the shadow economy, an increase in fraud cases and destabilization of the industry as a whole.” Lastly, all of this should become official by February 18th, which is the date that the drafted legislation is due.There is debate on how Russia will view cryptocurrencies. Will they be viewed as “currencies” or “assets?" The legislation has not been proposed yet, so all hot takes are purely conjecture. That said, all of the reporting news outlets pointed out that the government is recognizing crypto as "currencies," with the idea that they will be treated like any forex transaction. This has wide implications for the tax treatment of the asset class, and could indicate that it will be favorable for the citizens. While the word "currency" gives this impression, I have my doubts. Every country wants their piece of the potential tax pie for crypto, so I would imagine that Russia will develop a tax code unique to the asset class.Also, there are likely going to be restrictions on the size of allowable transactions. The official reporting document said, “operations equivalent to more than 600 thousand rubles must be declared, transactions outside the legal sector for such amounts will become a criminal offense.” 600,000 Rubles roughly equates to $8,046 USD, so it is clear that Russia will be keeping an extremely tight watch on crypto and making sure that none of it happens on decentralized platforms and outside of the control of the government.All facts considered, this news is bullish. Russia is the 9th most populated country in the world and one of the world’s superpowers. Any level of nation state adoption that avoids an outright ban is a positive.It will be interesting to see how the U.S. responds. Putin is playing 3D chess and game theory is kicking into high gear. To my free members (I love you!) - paid members receive emails like this one 5 times a week - Monday through Friday. Every Wednesday I chart any request sent by my paid members, often over 30 charts. It’s a ridiculous amount of work, but I do my best to add real value to anyone who subscribes. If you would like to join the paid side, you can do so for $15 a month here.In This Issue:Russia Proposes Crypto LegislationBitcoin Thoughts And AnalysisAltcoin ChartsIs Meme Season Back? Legacy MarketsHold Winners And Cut LosersBlackRock Offers Crypto TradingTennessee Proposes Crypto BillThe Wolf Of All Streets Podcast Ft. Robby YungMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #433 - Russia Proposes Crypto Legislation
The Wolf Den #433 - Russia Proposes Crypto…
The Wolf Den #433 - Russia Proposes Crypto Legislation
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. "Life moves pretty fast. If you don't stop and look around once in a while, you could miss it." - Ferris BuellerLife in crypto moves at the speed of light. Russia's central bank recently made headlines, proposing a full ban on crypto. The legislation would have included all interactions with crypto, including mining, which is wildly popular in the country. The FUD stemmed from a report titled “Cryptocurrencies: trends, risks, measures,” which cited threats to the country’s financial stability, purporting that the asset class was rife with fraud and scams. Skeptics pointed to a number of other times that the bank has made similar assertions, only to then be contradicted by Putin or another legislative body. Nevertheless, the threats felt real and few expected a complete 180-degree turn in just a few weeks.In a surprise twist, Russia and the central bank have agreed to draft legislation that recognizes cryptocurrencies as an “analog of currencies.” With this approval, cryptocurrencies will be allowed to freely move through the banking system and through licensed intermediaries. In other words, crypto is allowed, but under the watchful eye of Sauron, aka the regulators. The news also indicates that Russia is aware that it cannot ban crypto activity. The official statement read, “the complete absence of regulation of this industry, as well as the establishment of a ban, will lead to an increase in the share of the shadow economy, an increase in fraud cases and destabilization of the industry as a whole.” Lastly, all of this should become official by February 18th, which is the date that the drafted legislation is due.There is debate on how Russia will view cryptocurrencies. Will they be viewed as “currencies” or “assets?" The legislation has not been proposed yet, so all hot takes are purely conjecture. That said, all of the reporting news outlets pointed out that the government is recognizing crypto as "currencies," with the idea that they will be treated like any forex transaction. This has wide implications for the tax treatment of the asset class, and could indicate that it will be favorable for the citizens. While the word "currency" gives this impression, I have my doubts. Every country wants their piece of the potential tax pie for crypto, so I would imagine that Russia will develop a tax code unique to the asset class.Also, there are likely going to be restrictions on the size of allowable transactions. The official reporting document said, “operations equivalent to more than 600 thousand rubles must be declared, transactions outside the legal sector for such amounts will become a criminal offense.” 600,000 Rubles roughly equates to $8,046 USD, so it is clear that Russia will be keeping an extremely tight watch on crypto and making sure that none of it happens on decentralized platforms and outside of the control of the government.All facts considered, this news is bullish. Russia is the 9th most populated country in the world and one of the world’s superpowers. Any level of nation state adoption that avoids an outright ban is a positive.It will be interesting to see how the U.S. responds. Putin is playing 3D chess and game theory is kicking into high gear. To my free members (I love you!) - paid members receive emails like this one 5 times a week - Monday through Friday. Every Wednesday I chart any request sent by my paid members, often over 30 charts. It’s a ridiculous amount of work, but I do my best to add real value to anyone who subscribes. If you would like to join the paid side, you can do so for $15 a month here.In This Issue:Russia Proposes Crypto LegislationBitcoin Thoughts And AnalysisAltcoin ChartsIs Meme Season Back? Legacy MarketsHold Winners And Cut LosersBlackRock Offers Crypto TradingTennessee Proposes Crypto BillThe Wolf Of All Streets Podcast Ft. Robby YungMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO