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Russia Still Confused On Cryptocurrency Regulation, President Putin Favours Cryptocurrencies

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Russia Is Too Much Whimsical With Its Future Plans for Cryptocurrencies

While several independent nations have started taking their own stand on cryptocurrencies and are laying out their own guidelines and regulations, Russia seems to be still undecided on how it wants to proceed ahead with the Blockchain technology and Cryptocurrencies in particular.

Russia is being quite whimsical about its stance on cryptocurrencies and the turn of announcements coming from the country in past few days has left everyone absolutely confused and perplexed.

Russia’s Central Bank Calls for Nation wide Ban on Cryptocurrency Exchanges

 A Russian media outlet, RBU reported that Sergei Shvetsov, the first deputy Governor of Russia’s Central Bank, is working along with the Prosecutor General’s Office to plan out a nation wide ban on all the exchange websites dealing with cryptocurrencies.

While speaking at an event in Moscow, Sergey said:

“We think that for our citizens, for businesses the usage of such cryptocurrencies as an investment object carries unreasonably high risks. We cannot give direct and easy access to such dubious instruments for retail investors.”

Sergey is having quite a critical view on cryptocurrency saying that there are working negative phenomena for the Russian markets. As a result, in order to limit such type of instruments to operate, the government is planning to introduce certain regulations in place.

Also Read: Cryptocurrency Exchanges in U.S.A To Get Official License

Ministry of Finance Proposes Registering Miners & Issuing Licences to Exchanges

Later, In the meeting of expert council on financial technologies, the Ministry of Finance of Russia recommended to impose some regulations on the working of cryptocurrencies in the country. this included registering all the miners in the country who extract cryptocurrencies as well issuing of licences to exchanges as well as websites who deal in trading with virtual digital currencies.

Yana Pureskina, Director of the Financial Policy Department said:

“In order to counter money laundering and terrorist financing, it is important to establish the duty of registering digital currency issuers, the so-called miners, and to license exchange sites to control the exchange of digital currency for fiat, traditional cash or non-cash money.”

 Moreover, she was also quoted saying that the  ministry “considers it expedient to start limiting the number of persons who have the right to issue cryptocurrency, legal entities, and individual entrepreneurs, in order to protect the rights of market participants.”

Also Read: Russia To Give An Electric Boost To Bitcoin Mining

President Putin Asks Central Bank Not to Create Unnecessary Barrier for Cryptocurrency

 President Putin had chaired a high-level meeting with all top executives from different financial institutions of the country. Putin began the meeting while giving a brief introduction about cryptocurrency saying:

“As is known, virtual currencies, also known as cryptocurrencies, are becoming or have already become very popular. In certain countries, they are becoming or have already become legal tender, as well as an investment asset. I would like to draw your attention to the need to use the advantages that are offered by new technological solutions in the banking sphere.”

 However, he was quick enough to point out its members about the volatile nature and associated risks involved with cryptocurrencies.

“First and foremost, this is an opportunity for laundering illegal gains, tax evasion and even financing of terrorism, not to mention the proliferation of scams to which ordinary people can fall victim. Cryptocurrencies are issued by an unrestricted circle of anonymous entities. Therefore, buyers of cryptocurrencies may be involved in illegal activity.”

But later, Putin smartly drifted his attention to the need of regulations stating that how different countries are framing some rules and regulations for such digital currencies to be functional within their boundaries. He stated that Russia too should have such legal framework ready for digital currencies. Putin said:

“We need – based on international experience – to build a regulatory environment that will make it possible to codify relations in this sphere, reliably protect the interests of citizens, businesses, and the state and provide legal guarantees for using innovative financial instruments. It is important not to create unnecessary barriers, of course, but rather to provide essential conditions for advancing and upgrading the national financial system.”

 President Putin is said to be a person optimistic about new emerging technologies and how it could lead his countrymen towards a progressive path.

Also Read: Dubai Government To Launch It’s Own Cryptocurrency– “EmCash”

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Bhushan Akolkar
Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge.

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