Chinese merchants based in Moscow have just realized that investing in cryptocurrency will pay them off in the long-run. They are actively participating in the buying and selling of the digital currency. If we analyse the retail turnover, then it is about $10 billion each month.
What the Chinese merchants do is they convert their cash into digital currency and the digital currency is sent to China and it is then exchanged to Yuan. The interesting part is that about 90% of the businesses in Moscow are owned by Chinese merchants but they never deposit their cash into the bank accounts.
This is because they have realized the significance of digital currency. At the moment the Chinese merchants make use of anonymous wallets for buying and selling the digital currency. Currently, there are some flaws in the Moscow based digital currency market that is basically dominated by the Chinese merchants.
However, these flaws are bound to vanish with the passage of time when some regulatory improvements are introduced in the market. What is important to note is that cryptocurrency is the main source of income for about 12% crypto users.
However, the Governments need to focus on the regulation to introduce the element of transparency. The good news is that government is already thinking on these lines. It has already introduced two draft laws that focus on the crypto sectors. These laws are meant for the State Duma.
Once the regulations are implemented crypto trades are bound to prosper in Moscow. The regulation will also bring about the element of transparency. The objective is not to discourage the Chinese merchants. The key goal is to bring about the element of transparency. This way more people will be encouraged to trade crypto in Russia but it has to be done the legitimate way.
The Chinese Merchants also need to cooperate with the Government in this regard and need to follow the rules. They should remember the fact that if they do not follow the state rules that it will become difficult for them to trade crypto in comfort and this is something which no trader will want at the end of the day.
At the same time it is also important that the Moscow authorities should monitor for any violation in the crypto market. This is the best approach to encourage a legitimate approach of trading and make it a winning situation for all.