Russian Firms Pay Crypto Wages Despite Current Legislation
The digital asset market has suffered significant setbacks within the past year however according to recent statistics, cryptocurrencies remain a valuable solution for Russian businesses and those who work for them.
Studies Show Half Russian Fintechs Pay With Cryptos
Although Russia has not pronounced cryptocurrency as legal tender, an increase in companies within the region gain revenue and reimburses employees with digital tokens. Statistics show a 15% boost in crypto mining companies in the county over the past year in addition to the Russian crypto sphere consistently growing. With a high demand for industry expertise, wages earned by developers pay four times more than an average citizen’s salary each month.
Local crypto-focused media released reports stating that approximately 50% of ICOs and crypto businesses rely on virtual assets to pay for costs regardless of the current stance Russia has on the crypto sphere. Philipp Khomenok, Confideal’s marketing and relations manager, stated that half of Russian crypto companies issue salaries in the form of cryptocurrency rather than local legal tender. This is particularly the case for companies that employ foreign developers and experts.
Dmitry Lazarichev, a founder of the UK-based crypto digital wallet and ATM card provider, Wirex, stated that for nations that support crypto legislation, employees reimbursed for services in digital assets is a simple, secure, and transparent solution. Regulatory policy allows for what he called a white scheme, which facilitated the collection of taxes and various required payments. However, Lazarichev explained that for countries that hold policies that do not support cryptocurrency activity, salaries will be issued under the radar and be as he described black instead.
Employees Worldwide Prefer Crypto Salaries
Wirex offers several forms of payments including bitcoin core and USD. Lazarichev stated that 50% of the crypto company’s employees are issued payments in the form of bitcoin. Similarly, GMO, a Japan-based internet company, began implementing the crypto salary scheme last year. Advantages of speedy and inexpensive transactions encourage companies such as Bitcoin.com to utilize bitcoin cash for finance activities. Within Russia, ETH and XRP are also popular options for digital tokens preferred by Russian traders. It is also a common trend for ICO funded startups to settle payments using native tokens.
A system of paying out employees in cryptocurrency based on a set fiat rate equivalent is the most common method of utilizing cryptos for salaries. This trend has become a major movement in the workforce industry with companies such as Coinality, Dream, and Bitgigs providing the service of recruiting freelance employees accepting wages paid in digital assets. A flurry of websites have also been designed to advertise crypto paying companies such as Cryptojobslist, Cryptocurrency jobs and many more.