Draft Law Russia: Offshore Companies for Trading Crypto

Draft Law Russia: Offshore Companies for Trading Crypto

The Russian Ministry of Finance is drafting a bill that will allow the creation of offshore companies for the cryptocurrency trading. This follows the ministry’s recently published bill on the legal framework for cryptocurrency.

Crypto Trading Offshore

The Ministry of Finance has proposed the creation of offshore companies in Russia for cryptocurrency trading,” Ria Novosti reported. Deputy Finance Minister Alexei Moiseev told journalists that his ministry “is considering the possibility of implementing cryptocurrency organized transactions on the Russky and Oktyabrsky Islands,” according to Tass.

Oktyabrsky is a river island in the Kaliningrad region of Europe. Russky Island is part of the city of Vladivostok, off the Pacific coast near Japan. Last November, a Hong Kong company announced it plans to set up a crypto mining farm on Russky Island.

Referring to a recently published bill titled “About Digital Financial Assets,” Moiseev said the two islands are being considered in the bill. He explained that the opportunity to trade cryptocurrency on Russky Island was “discussed with the Ministry of the Far East,” said Ria Novosti.

Moiseev believes that “the exchange of cryptocurrency for rubles and other assets can be solved in separate territories,” Tass remarked and quoted him as explaining:

Perhaps it will not be in the common territory, but within special territories such as Vladivostok’s free harbor where there is already an offshore item, and a draft law is now being prepared for the Russky and Oktyabrsky Islands, which will also have a special regime“.

Different opinions

The Ministry of Finance and the Bank of Russia have not yet reached an agreement on the possibility to change cryptocurrency for rubles and other assets.

Presidential Advisor for Internet Development, Herman Klimenko, “criticized the idea of ​​the Ministry of Finance to create offshore companies in Russia to trade cryptocurrency,” Tass reported. According to him, from a technical point of view, there is no difference when the cryptocurrency are traded. Klimenko said:

“This is the same thing as legalizing mines in a certain territory. You can not prove that it is running on certain sites or certain equipment. “In addition, he believes that the organization of offshore companies does not have an economic base and will not lead to the creation of new jobs.”

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