Market Analysis

Russia Is Currently Not Prepared For The Digital Currencies.

 

According to a local news source ‘RIA,’ the president’s Special Representative on digital and technological development ‘Dmitry Peskov’ mentioned his vision on the state of crypto assets in an interview with RIA, saying:

 

“From the beginningwe’ve not  suppressed blockchain and digital currencies, and are attempting to bring them into a normative paceHowever the govt should offer warnings, that there’s a high risk associated with this new MMM 2.0 Scheme (famous pyramid scheme).”

Peskov added further said that the official position of the Russian financial banks on crypto was too soft. “The associated threat level is very high and the stand adopted against it, might have been stricter.” Moreover, Peskov argued that the issuing of cryptocurrencies is contrary to basic state principals:

“The issuing and circulation of digital currencies cannot however be allowable. It contradicts the fundamental functions of state. Order is vital. If we adopt a bill on the principles of operating with digital currencies on the govt level, then we are able to discuss the implementation of those principles in everyday life’sHowever it’s not right to try and do this in reverse.”

According to Peskov, the simplest move forward for the legal development of the crypto sphere within the country would be to make a regulative sandbox to research “all aspects of work” with digital currencies.

Earlier this year Russian president ‘Vladimir Putin’ himself addressed the crypto question throughout his annual live question and answer session. Vladimir Putin aforementioned that Russia cannot have its own digital currency, as digital currency “by definition” can’t be controlled by a centralized entity. He conjointly noted that whereas the govt doesn’t regulate crypto mining, it “treats it terribly rigorously.”

The position of cryptocurrencies, mining, and ICO’s in however not clearly outlined in Russia. A draft law “On Digital Financial Assets,” that was made by the Russian Ministry of Finance in March this year was accepted by the State Duma within the 1st of three readings in mayIn line with RIA, the 2nd reading is expected to take take place sometime later in this year.

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