Is Russia going to legitimize cryptocurrencies?

At the Moscow financial forum, Russian Finance Minister Anton Siluanov revealed that Russia is taking steps to allow digital currencies. Is Russia going to legitimize cryptocurrencies anytime soon?

11 September, AtoZForex The Russian Finance Minister Anton Siluanov revealed at a recent financial forum in Moscow that Russia is in the progress of developing a legal framework for cryptocurrencies. This framework will govern the transactions of cryptocurrencies like Bitcoin.

He assured the users of Bitcoin and other cryptocurrencies that the government will not outlaw nor penalize them. Russian Ministry made U-turn on digital currencies after President Vladimir Putin signaled his approval for the currencies. As Alexey Moiseev, Russia’s Deputy Minister of Finance said in 2015 at a national banking conference that Russia will likely ban Bitcoin.

Putin’s embrace of cryptocurrency

Putin had met Ethereum Founder Vitalik Buterin, who ingrained the merits of Russia’s usage of the Blockchain, the technology underlying Bitcoin. A consortium of lenders are seeking the possibility of using the technology to cut costs. Meantime, the presidential aide had also announced plans for an initial coin offering (ICO).

Is Russia going to legitimize cryptocurrencies soon?

Russian Finance Ministry had previously considered prohibition of the use of cryptocurrencies in apartments which turned into unsafe. After Putin’s approval for the currencies the state has realized that digital currencies are part of the new economic realities. Anton Siluanov said there is no point in outlawing them. He said the next move is to draw up a bill before year-end to regulate cryptocurrencies. Siluanov said,

“Russian Ministry’s goal is to make the purchase of cryptocurrencies covered by law in the same manner as buying treasury bonds and other securities.”

Bank of Russia Governor warns of ‘gold fever’

As with other technology trends, digital currencies have not won over everyone as there are still non-believers in Russia. Bank of Russia Governor Elvira Nabiullina warned of digital currencies as a “gold fever”. She said:

“The use of crypto-currency as a surrogate for the ruble in trading goods and services.It has a risk of undermining the circulation of money. “

Meanwhile, China has not been as receptive to the growing demand for crypto currencies. In fact, its financial regulator plans to shut off major Bitcoin exchanges which led falling in the price. There has also been much speculation over cracking down on cryptocurrencies after The People’s Bank of China (PBOC) announced to outlaw fundraising through ICOs.

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