Russia is considering turning the island of Bolshoy Ussuriysky near China into a new financial hub.
Crypto trading must play an important role in this.
The proposal was suggested during the SPIEF, the St. Petersburg International Economic Forum, the place to close big business deals in Russia.
Crypto coins were a ‘hot topic’ during the summit. President XI was present as a special guest on behalf of China.
Financial hub and crypto coins
According to Leonid Petukhov, director of agency ‘Far East for Investments and Exports (IPA)’ there is a proposal to found an offshore financial center on the island.
The island is situated between Russia and China. The Russian government still has to approve the plan, reports TASS, Russia’s largest news agency .
According to Petukhov, it is a ‘perfect place’ to create a large financial hub.
One of the test balloons is that the hub can serve as a free port for trading in crypto currencies and new crypto grants.
Russia currently has two tax havens: the Russky Island near Vladivostok and the Oktyabrsky Island in Kaliningrad.
Residents are exempt from paying dividend tax.
Such ‘regulatory sand boxes’ have been created in Malta, Gibraltar and more recently the Philippines.
It must further strengthen trade relations between both large countries.
Crypto coins are prohibited in China.
Russia is flirting with the idea of a national (transparent and bilateral) stablecoin.
It became clear a the summit, that Russian President Putin flirts openly with blockchain technology.
Putin wants to speed up the regulations for crypto coins such as bitcoin.
From 1 July, more information about this is planned to be released to the public.