Putin backs Russia cryptocurrency regulation

Enthusiasm for digital currencies in Russia is increasing. As a result, Putin backs Russia cryptocurrency regulation after high-level talks with government officials. Doesn’t it seem Russian central bank needs to give cryptocurrency a try instead of banning Bitcoin websites?

13 OctoberAtoZForex Russian President Vladimir Putin held a meeting with financial regulators over the Russia cryptocurrency regulation matter. In the meeting, Putin seemed to voice support for cryptocurrencies. As a result, the central bank and the finance ministry will prepare a basic draft law for cryptocurrencies regulation including Bitcoin.

Putin backs Russia cryptocurrency regulation

At the meeting, the officials finalized the decision to regulate cryptocurrencies in Russia. According to a report, the Russian government has decided to officially regulate the mining and circulation of cryptocurrencies. After the meeting, Finance Minister Anton Siluanov, who earlier planned cryptocurrency education system, announced that:

“We have agreed on the following: the state should regulate the process of issuing cryptocurrencies, the process of mining, the process of circulation. The state should head this situation and regulate it legally. 

We will prepare the draft law together with the Central Bank. I think we will be able to determine the basic regulatory positions before the end of the year.”

The move came shortly after a central bank governor confirmed the ban on online bitcoin exchanges. Russian Central Bank First Deputy Governor Sergei Shvetsov called cryptocurrencies “dubious”. He also vowed to block access to external websites that offer cryptocurrency brokering services in the country.

Instead of a blanket ban on cryptocurrency, the officials have decided to control the mining and circulation of digital assets during the meeting. It was attended by Mr. Siluanov, Central Bank Governor Elvira Nabiullina, Central Bank Deputy Governor Olga Skorobogatova, Presidential Aide Andrei Belousov, and Qiwi CEO Sergei Solonin.

At the meeting, Putin acknowledged the risks associated with cryptocurrencies. However, he also stressed that:

“It is important not to create unnecessary barriers, of course, but rather to provide essential conditions for advancing and upgrading the national financial system.”

Putin says cryptocurrencies bear ‘serious risks’

Similarly, President Putin said bitcoin and other cryptocurrencies pose “serious risks” from the perspective of fraud and money laundering. He later clarified that Moscow intends to supervise the market rather than impose an all-out ban on digital currency use.

 “We need, based on international experience, to build a regulatory environment that will systematize relations in this area, to protect, of course, the interests of citizens, business, and the state, to provide legal guarantees for working with innovative financial instruments,” he said.

In addition, Deputy Finance Minister Alexei Moiseev indicated that there may be some restrictions.

“We said that restrictions are needed on purchases and sales, accounts, miners’ taxation and so on…Yes, there is such an idea, we support it. We should discuss the amounts. We should look at international practice,” he said.

However, earlier also Moiseev had talked about restricting the purchase and sale of cryptocurrencies in Russia. He proposed to list them on regulated exchanges and to ban non-qualified investors from buying and selling them. However, the proposal did not receive much support from other regulators.

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