Russia Announces Plans to Launch a Crypto Trading Financial Hub on the Border of China
Leonid Petukhov, the head of the Agency of the Far East for Investments and Exports (IPA), has revealed that they are considering the development of an offshore crypto trading centre on Bolshoy Ussuriysky Island. Besides digital assets, the hub will also offer other financial services. Bolshoy Ussuriysky is located between China and Russia.
The idea of the offshore financial hub came up during the recently concluded St. Petersburg International Economic Forum. Several state representatives attended the meeting, where digital currencies were one of the main topics on the agenda. TASS, the biggest media outlet in Russia, was the first to break this news.
Petukhov believes that the island offers a prime location for the development of a financial trading centre. Bolshoy Ussuriysky sits on the Amur River, near the Russia city of Khabarovsk. It also falls under both China’s and Russia’s borders. For these reasons, Petukhov believes that this unprecedented financial centre will facilitate a partnership between the two countries.
Additionally, Petukhov disclosed that the centre would serve as a hub for crypto trading, crypto-based stock exchanges, and other foreign exchange markets.
As of now, Russia has two existing administrative districts that serve as financial trading hubs. One is located in Vladivostok on Rusky Island, and the other in Kaliningrad, on the Oktyabrsky Island. Residents of these areas are not obligated to pay the income tax generated from dividends and profits paid by foreign companies.
However, the country lacks a financial hub that offers crypto trading. If adopted, the proposal for the Bolshoy Ussuriysky Island would be the country’s first.
Other countries that already have crypto trading centres include the Philippines, where the Cagayan Special Economic Zone has transformed into a crypto innovation hub. The effects are already apparent, with revenues generated as well as the number of investments in crypto trading surging significantly over the past 12 months.
Russia is looking to emulate the precedent set by the Philippines to create its economic zones that deal with crypto trading and foreign exchange markets. Now, crypto enthusiasts are waiting for China’s opinion on Russia’s intentions.