Bitcoin Boutique In Moscow Speaks On Russian Regulation

Bitcoin Boutique In Moscow Speaks On Russian Regulation

The first physical cryptocurrency store in Russia is located in Central Moscow and it looks like a miniature version of the New York Stock Exchange. However, you will not find any stock there, only cryptos. The place is called DeeCrypto and it is spread across two floors in the city. However, it looks like this interesting little place might be threatened by regulation.

Unfortunately, the truth is that Russia has a huge grey area when the subject is cryptocurrencies and the blockchain technology. The country has no firm stance on the issue and places like this shop, which sells cryptocurrencies and mining equipment, are not regulated at all.

The company has already been in business for seven months but it looks like it might be shut down soon if a regulation that is not positive is passed. The store sells mining equipment and crypto merchandise and it actually looks a lot like and Apple physical store. Some of the merchandise on the store include t-shirts, “virtual currency wallets” and more.

While the place was shining when it was created and the prices of Bitcoin were still high, the cryptocurrency market has made the store lose most of its clients, which prompted some serious trouble. For instance, mining equipment is less profitable today.

Back in the day, though, things were different, the store founder Denis Onatsik affirms. DeeCrypto was created when nobody was selling mining equipment offline and online scams were reaching all-time highs with people ordering machines online that did not arrive at their houses ever.

As many Russians were being scammed, the shop owner decided to give them an interesting new proposal, to buy the equipment offline, which could make them trust the buyer. The truth is that you can see something, touch it and hear a salesman talking about it, there is a whole new level of trust involved. The sector is full of fraud and sometimes you pay in Bitcoin and the product never arrives.

With the prices of mining equipment dropping a lot, however, the price of the machines went down, so the whole thing is a very risky business in reality. The owners were sure that people would form lines in front of the company when he opened, but the future looked bleaker than he hoped.

Russian Regulation

While the store received permission from the Federal Security Service (FSB), it looks like a temporary measure and the owner is sure that the store is only temporarily secure from any fallout in the legislation of the country.

The main issue here is that the legislation for cryptos in Russia is simply not going very well. There is so much uncertainty and the government does not look very kindly on Bitcoin at all.

Recently, the chairman of the Russia State Duma Committee, Anatoly Aksakov, affirmed that cryptos would still need to apply to the old tax laws despite the fact that they are very new and complicated assets.

This was also a hit to the Russian mining market and Denis believes that it might lead the store to close because mining simply is not so profitable anymore. Due to regulatory issues and taxes, even if the government does not withdraw the permission it has given for the business to work, it looks like Denis’ situation might be very worrisome.

Will his store still exist in 2019? That is for him to worry about and for us to found out as the Russian state decides how to handle its crypto laws.

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