Russian President Vladimir Putin has declared his intentions to enact laws that will comprehensively regulate the cryptocurrency markets very soon.
Crypto Legislation on the Cards
The no-nonsense Russian president Vladimir Putin has made it clear that his regime is not ready for half-baked crypto regulations going forward. Putin is of the opinion that the complete management of the Bitcoin and altcoin ecosystem is a load too heavy for the Central bank to carry alone.
Therefore, his administration will lend the apex bank a helping hand in entirely regulating Bitcoin and other cryptocurrencies.
Russia’s number one citizen told Tass Media that “This is the prerogative of the Central Bank at present and the Central Bank has sufficient authority so far. However, in broad terms, legislative regulation will be definitely required in future.”
The president has expressed his fears concerning cryptocurrencies. He said the volatile nature of digital assets makes it imperative to be wholly regulated to cushion the risks inherent in virtual currency trading for the Russian citizens. He explained that:
“It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it, and it is not secured by anything. It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently.”
The head of State opined that cryptocurrency-based investments share the same risk levels with investment in shared-equity construction. In his words:
“We cannot afford a recurrence with the cryptocurrency as it happened with deceived equity construction investors. If we regulate and, furthermore, [then] the state will be responsible for the grave situation the people may face.”
In the coming weeks, the Russian State might introduce stricter rules to govern its cryptocurrency environment. Russia’s Deputy Finance Minister Alexei Moiseev has hinted towards the introduction of a bill by the end of February 2018. The law will focus on regulating the circulation of digital currencies and Initial Coin Offerings (ICOs).
It is crucial and worth noting that Putin and Russia’s decision to ultimately regulate the Russian cryptocurrency ecosystem is not because they are crypto skeptics. Instead, the country wants to use regulations to sanitize the Russian cryptocurrency environment thereby making it impossible for criminals to use digital currencies for illegal practices.
On several occasions in the past months and years, Russia has looked positively towards Bitcoin and cryptocurrencies. For example, BTCManager reported in April 2017 that Russia was looking towards the direction of legalizing bitcoin as well as the country’s plans to use cryptocurrencies to avoid US sanctions in December of the same year. In essence, this new regulation of the Bitcoin and Crypto markets a might just be the beginning of greater things to come.