Crypto Regulation on the Horizon as Putin Backs Digital Assets

Putin Backs Crypto Despite Global Scrutiny Over Money Laundering Concerns

Russian President Vladimir Putin has expressed his support for cryptocurrencies, which are being scrutinized by regulators throughout the world because to concerns that they might be used for money laundering and criminal activities.

The Russia government take careful step with cryptocurrency.

He said during the CNBC interview published Thursday on the Kremlin’s website that cryptocurrency “has the right to exist and may be used as a method of payment.”. Nonetheless, he emphasized that it was too soon to discuss the use of digital currencies for trading oil and other commodities, which account for the majority of Russia’s exports.

The statement from the president came just days after Alexi Moiseev, his deputy finance minister said that Russia will not ban cryptocurrency trading like China does.

In July 2020, Russian legislators approved a major bill that established the legal status of Bitcoin and other digital currencies. Citizens, according to Moiseev, can purchase digital assets and utilize cryptocurrency wallets on FX. He did, however, emphasize that the restriction on cryptocurrency payments will remain in effect:

“At the moment I can say that payments in cryptocurrencies are still prohibited. But citizens can buy crypto and use wallets outside of Russia. I believe things will stay the same for now. So far there are no plans to change anything. “

The Bank of Russia has frequently cautioned investors that the cryptocurrency market is very volatile, and digital currencies are not permitted to be used as a form of payment in Russia. However, Deputy Finance Minister Alexei Moiseev stated last week that there are no plans for a blanket ban akin to China’s.

Putin’s tolerance of cryptocurrency comes as the White House considers launching a broad initiative to review and coordinate crypto policy across President Joe Biden’s administration that could lead to new regulations. China this year has cracked down on the industry and in September banned all crypto transactions. 

Patrick