Although cryptocurrencies are becoming very popular, the Russian Federal Tax Service has only considered bitcoins to be “not illegal.” Some members of the Russian Federation government have also argued that the bitcoin and other similar currencies may be too dangerous as it is hard to equate them with foreign currencies. The head of the central bank has also expressed an opposition to regulating cryptocurrencies as money.
President Vladimir Putin has been meeting with financial leaders in Russia to potentially move in a different direction with regards to handling cryptocurrencies. He argues that technology is allowing the banking industry to grow and evolve and that such currencies are a new way of doing business that people in the country should consider looking into.
This move comes as the Russian economy continues to grow in power. The potential for the bitcoin and other similar currencies to be openly utilized throughout the land could help with growing the national economy even further.
Putin did acknowledge that cryptocurrencies could be used with harmful intentions in mind, what with such currencies being easy to use with anonymous transactions in mind. However, he feels that strong regulation of these currencies will help to protect citizens and to ensure that the currencies are used responsibly throughout Russia.
The general sentiment from Putin is that cryptocurrencies should not be banned as there is a strong potential for such currencies to grow and become more viable investments for all to look into. This is in spite of the arguments many others in the Russian government have against it.
Sergei Shvetsov, the First Deputy Governor of the Central Bank, argues that cryptocurrencies are questionable in their nature. He is aiming to block access to websites and services relating to these currencies within Russia.
Even with this, Russia has been looking into blockchain technologies in recent time to analyze how they function. The blockchain system is what the bitcoin and other cryptocurrencies operate off of.
The finance minister of Russia also said that a bill that would regulate cryptocurrency actions in the country could be produced and posted before the end of the year.
Change Amid Other Developments
The discussions come as the bitcoin continues to experience record highs on the market. This is in spite of China and South Korea among other countries issuing bans or significant restrictions on how the bitcoin can be used. Many of these bans have come about due to a general sense of distrust over the bitcoin.
There are also discussions among other countries over how cryptocurrencies can be regulated. A research report from the Bank of Finland recently suggested that it is impossible to fully regulate the bitcoin.
The Financial Market Committee of the State Duma, the lower house of parliament in Russia, has been considering multiple changes to how cryptocurrencies may work. Some drafts on how to handle the currencies have been in the works although there are no details as to what they are about. The remarks from President Putin may help with controlling how the currency is to be used in the future.
