What if a nation close doors to crypto world

By Pot Project | Pot News | 2 Jun 2020

What is the risk of a nation that does not welcome the crypto industry? An example

The crypto industry in the coming decades will be part of our socio-economic world. But what if a nation decides not to welcome it?

Perhaps there has been little debate about the risk of a nation failing to accommodate crypto industry within its economy, which is not only made up of exchanges where traders speculate on old and new crypto assets to make a lot of money immediately.

This sector is proving to be much wider, capable of innovating, capable of being forward-looking and also resilient to crises.

In Russia, among the many countries where crypto industry is unwanted, the tax authorities risk losses of $ 10 billion a year in taxes, Coindesk tells us. Why lose such a substantial economic income? Which nation, even more so in this pandemic period, can afford the luxury of losing $ 10 billion in taxes?

The crypto sector in Russia however, has decided to make its voice heard and to make its position known by sending letters to the Minister of Economic Development, and to the parliamentarians of the Duma. A group of companies came together in an acronym, RAKIB, others sent their own independent letters to make the world of crypto industry known to Russian politics and prevent it from being ousted from the future of the economy and finance.

The paradox

 The paradox, explains the parliamentarian who made himself the promoter and spokesman of the sector's requests, is that the Russians will be able to continue operating but will have to do it on platforms not resident in Russia and then they will have to declare the profits in the Federation to be taxed as any other taxable income.


The future of the sector in Russia

Yes, because the new legislation prohibits the birth of exchanges in Russia.

The servers may be in Estonia or Lithuania, but not in the Federation. The domino name cannot be registered in the country, but it can be registered in the neighboring Georgia: a real absurdity.

The second paradox

In 2017, President Vladimir Putin announced a plan to digitize the economy to keep up with the times and with other nations.

We know, the progress of companies today also passes largely through the digitization of services, processes, transactions ...

It seems at least bizarre, therefore, that a nation that has a digitization plan to implement, however, wants to exclude digital assets such as crypto assets from its innovation process.

The loss in technological terms

Russia is not the only one who lives in the uncertainty of whether or not to accept crypto industry. In the United States, the debate is very heated and the recent developments of Telegram's TON demonstrate this. China is another example and then India which for now seems to want to favor the sector.
The loss for the nations that will push this industry out of their socio-economic development plans will be great.

We repeat, we must not look only at bitcoin, here the discussion is much deeper, broader.

The decentralization of services is one of the destinations to which we will land as a company: the transfer of value through digital and decentralized means of payment; the use of decentralized financial instruments through which to save and earn (DeFi); the notarization of any contract on blockchain-based platforms.
We will experience this scenario in the coming decades, but if a nation removes the economic basis that moves the sector from its territory, nothing can develop there.

In an attempt to ban citizens from investing in cryptocurrencies, just because nothing has been understood, some nations in the coming decades may find themselves in conditions of serious socio-economic backwardness.

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