Russia remains one of the most prospective and controversial markets for cryptocurrencies development. On the one hand, Russians show an active interest in bitcoin and other digital coins. On the other hand, the immaturity of the cryptocurrency regulations restrains the development of the market by making crypto businesses register legal entities under other jurisdictions. As a result, the budget is missing millions of rubles from these businesses’ taxes yearly. Will Russia become a crypto harbour in CIS countries? The answer to this question shares the MinePlex crypto bank cofounder Alexander Mamasidikov.
Q: Alexander, how the cryptocurrencies exchange market works nowadays in Russia? What forms of exchange exist in the country?
А.М: The exchange market in Russia is unique because of limitations and the lack of clear regulations in the country. For example, it is prohibited to use cryptocurrencies for paying for goods and services. The taxation of digital assets falls into the category of unresolved questions. Some global exchanges are not available directly in Russia, and Russian citizens can not use some crypto cards. At the same time, both reliable and popular options are still available like Binance, Kraken etc. It allows users to safely buy and sell cryptocurrencies. P2P exchanges are also still in demand since a seller and a buyer can have a direct contract there. Another effective method of exchanging crypto to fiat is OTC platforms where deals are conducted between two parties without middlemen. The most popular crypto wallets in Russia are Binance and Blockchain that have proven that they deserve to be trusted with time. According to surveys, 30% of respondents in Russia believe that cryptocurrencies will be in parity with traditional money in future.
Q: While the crypto exchanges are relatively regulated, the operations of P2P exchanges remain untouched by these regulations. What risks might exchanges face for working in a grey zone?
А.М: Despite the lack of regulations, experts report a gigantic growth in the number of cryptocurrencies users and demand for exchange services in the country. The main risk in these situations is of course the risk of losing money because going to the lawyers will bring no result. That is why it is important to always remember about the safety of the assets and carefully choose the exchange platforms.
Q: In fact, behind the exchanges now there are people with money who exchange cryptocurrencies into fiat manually. How safe is that and which exchanges are trustworthy?
А.М: No one gives a 100% guarantee that the deal will be closed or the seller is honest. But an enormous number of people are using exchanges daily. When choosing a platform, first of all, it makes sense to rely on the rating platforms. They provide users with actual data on sellers, exchange rates and types of payments.
Q: When choosing between a P2P platform and an exchange, what is more preferable, considering the commissions, risks, transaction speed etc.
А.М: P2P platforms just as exchanges have their advantages. For example, some exchanges provide clients with digital assets insurance, store users’ cryptocurrencies in cold wallets, and ask for identity verification. P2P platforms, on the other hand, exclude middlemen. Their main advantage is anonymity. You do not need to register on any web page and follow the KYC procedure.
Q: How to choose the platform to exchange crypto to fiat? What are the criteria?
А.М: I will advise on 3 main points:
- The most important one. Take your time to assess the security of the platform. There are web pages with reviews provided by a lot of people, rating comparisons etc. Choose a platform with high ratings. Also, it is necessary to check how the platform secures your assets against hackers, how it ensures the safety of the transaction.
- Compare commissions and currencies which you would like to purchase for tokens. Choose the one that suits you.
- Evaluate the ways of payments and transaction speed. If there is a way to quickly conduct a transaction, why wait a week.
Also, it is very important to never tell anyone your passwords and confirm the authenticity of the addresses involved in the transaction.
Q: If you fall victim to a fraudulent exchange, what are the steps? Or there is none and one thing to do is to make peace with the fact of losing the money?
А.М: Always save the screens of all communication. It will serve as evidence in case of fraud. The exchange of messages is the first thing that usually disappears. Then it might help to write to the tech support or contact the P2P platform management directly to find ways to deal with the situation. One of the ways is to find reviews on the Internet from people who faced a similar situation and retrieve information on how they approached it. Keep calm.
Q: In your opinion, in current reality, will the exchanges and P2P platforms that operate in the grey area continue to develop or exit the market with the tightening regulations?
А.М: We have to assume responsibility for any actions on the crypto market. The crypto industry is like a boundless sea. One needs to be trained not to be dragged to the bottom. But if you are well-prepared it provides a sea of opportunities. Also, it is necessary to monitor the government’s stance on cryptocurrencies that can change at any moment.
Real high-quality crypto projects aim for reducing the amount of fraud in the market and during exchange operations in particular. For example, exactly for this MinePlex created a new technology in the CrossFi market that aims to unite the reliability and transparency of blockchain technology with the benefits of traditional financial services. Thanks to this project, everyday usage of cryptocurrencies will become feasible and safe in the near future.
Image by Petre Barlea from Pixabay