Russia’s OTC Peer-to-Peer Bitcoin Trading Continues To Rise

Over-the-counter (OTC) trading is on the rise in Russia as demand and interest for Bitcoin and other cryptocurrencies continue to rise.

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Over-the-counter (OTC) trading is on the rise in Russia as demand and interest for Bitcoin and other cryptocurrencies continue to rise.

Russia’s OTC Peer-to-Peer Bitcoin Trading Continues To RiseOTC trading rises despite crypto trading restrictions

When it comes to cryptocurrency trading restrictions, China is the country that is best known for its harsh stance. However, it isn’t the only country, with Russia also restricting cryptocurrency trading.

Despite restrictions, demand for Bitcoin and other cryptocurrencies continues to rise. Local media reports that trading volume for leading crypto tokens like Bitcoin and Ethereum can be as high as $50 million on peak days in Moscow alone.

This is a huge figure, especially considering the restrictions currently in place. Towards the end of last year, the government revealed it considered banning cryptocurrency trading in the country due to concerns over price volatility and money laundering.

The country’s ministry of finance, however, changed its stance in January, stating that it would regulate the market instead of banning trading outright.

The ministry wrote a bill to allow crypto trading through special exchanges which operated under special licensing but still banned Initial Coin Offerings completely. The Russian government created three legislations around cryptocurrencies and crypto-related businesses.

The ministry was looking to reduce the risk of fraud and create a system that allows the taxation of cryptocurrency transactions to support the state budget.

While the regulatory framework has already been submitted, the rules have not yet come into effect. This has led the cryptocurrency industry to stagnate over the past few months. Companies looking to operate exchanges in the country don’t feel comfortable operating in a legal grey area.

The approval of the three bills is expected to be done by the end of the year. Cryptocurrency exchanges are barred from operating in the country as long as regulations are still unclear.

OTC trades take advantage of lack of regulations

With regulations still lacking, local OTC platforms continue to be the alternative to traders. They are also making a lot of profit as they charge 1.5 to 2 percent as commission rates, allowing them to see hundreds of thousands of dollars daily as profits.

The situation is similar to China which has banned cryptocurrency trading and exchanges in the country. Authorities in the country continue to place sanctions that make it harder for traders and investors in the country to buy crypto tokens.

However, investors have found a way around that as a recent article by South China Morning Post revealed. According to the report, that crypto trading still takes place in the country despite the ban.

The report noted that traders make use of Tether (USDT), and VPN to trade cryptocurrencies, with exchanges registered outside the country used for trading. The market has also not deterred many from buying and selling digital currencies.

Despite efforts by some governments across the world, cryptocurrency trading continues to be on the rise.

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