Putin Puts Pressure on the Government to Speed Up Cryptocurrency Regulations

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by Konstantin Rabin · 3 min read
Putin Puts Pressure on the Government to Speed Up Cryptocurrency Regulations
Photo: President of Russia

Expert in FinTech and long-standing crypto enthusiast, Konstantin Rabin shares what hides behind the recent developments in the Russian regulatory crypto landscape.

Russia is probably one of the hardest countries to discuss in terms of cryptocurrencies. A clear relationship between the federation and the currency has yet to be understood as there have been several back-and-forths in the past couple of years.

Vladimir Puting, the country’s leader, has now put forward a new deadline for the government to come up with a tangible regulatory framework for the digital currencies. The report comes directly from the Russian President’s official website. Which states the deadline to be for July 1st.

Judging by the fact that the government has only 1 month to come up with a regulation, it will require several institutions to take part in it. Which means, that both the Council of the Federation of Russia and the Federal Assembly need to cooperate in order to fit into the timeline.

Putin Actually Likes Cryptos

It is no secret that in the past the Russian President had many things to say about cryptocurrencies, both in front and away from cameras. The most notable event was when he had a behind-closed-doors meeting with Vitalik Buterin, the creator of Ethereum.

According to Russian media outlets, the regulations will simplify the registration and circulation of digital currencies in Russia and support the country to accumulate as much as possible in the future, in order to re-invest it in the economy.

The digital economy of Russia has already become an extremely sensitive subject, something that politicians have been disputing. One side believes that a complete implementation of the Digital Economy will help to track all of the transactions and prevent any threats to the country, while others believe that the country is not ready to disregard Cash quite yet.

Disagreements Over the Regulations

Regarding the fact that regulation of cryptocurrencies will officially classify them as a legitimate means of payment in the Russian Federation, some politicians voiced their disagreements. Mentioning the fact that the usage of the asset is quite limited within the borders and formally acknowledging them would bring in nothing more than anonymous transactions, something that the Russian government doesn’t want to handle in the long run.

This could be understood as information came out about Japan struggling with crime and money-laundering related crypto transactions. The amount has grown significantly since 2017 and Russia doesn’t want to put on the same boots.

Overall, however, it is hard to say what will happen because of this regulation as there is no clear framework. Regarding the fact that Russia has quite a lot of crypto holders, it could actually prove damaging to the whole sphere if the regulations are too harsh. However, if they are a bit more liberal and allow general payments, then the circulation may increase and overall popularize the coins further.

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Andy Watson
Author: Konstantin Rabin

Konstantin has been working in the financial services industry since 2011. He is over-viewing various updates in the technology, regulation, and market movements. He's passionate about cryptos and all things financial.

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