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    January 17, 2018

    Putin outlines that cryptocurrency oversight legislation will ‘definitely be needed’

    Vladimir Putin

    Russian President Vladimir Putin has once again outlined his view that legislation outlining rules for cryptocurrency trades will be needed in the future.

    According to media house TASS, President Vladimir Putin has once again iterated his view that greater cryptocurrency legislation is needed – ahead of the expected first draft of Russian digital currency regulations next month.

    Speaking on January 11th, Putin elaborated that rules for the country’s cryptocurrency sector will be required in the near future – quipping 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.”

    Read: Germany’s central bank pushes for global cryptocurrency regulation

    Putin continued to elaborate that despite his skepticism of cryptocurrency, he does see utility in the blockchain – offering 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…” before continuing to say that “It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently.”

    Putin recently issued a sweeping condemnation of digital currencies, in which the statesman described Bitcoin as a pyramid scheme, commenting that “We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”

    A difference of opinion

    In an interesting divergence, Russia’s communications minister, Nikolay Nikiforov, offered previously that “Bitcoins are a foreign application of Blockchain technology, and Russian law will never consider them as a legal entity under the jurisdiction of the Russian Federation”.

    Those remarks fall in stark contrast to those of Russian First Deputy Prime Minister Igor Shuvalov, who recently indicated his support for digital currencies – saying “…I am a supporter of cryptocurrencies. I believe that a CryptoRuble should exist.”

    Nikiforov has confirmed, however, that a Russian CryptoRuble would be issued, controlled, and maintained only by authorities at some point in the near future, while Putin offered that his government would aim to further regulate ICOs and cryptocurrency mining by July of 2018.

    Read: Maduro calls for ten countries to embrace Venezuela’s new oil-backed petrocurrency

    Have your say!

    What are your thoughts? Could Russia successfully introduce cryptocurrency regulation and issue its own CryptoRuble? Let us know your opinion in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

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