What Has Happened?
It looks as if the Russian government is all set to get involved with the Cryptocurrency industry although it has been a prudent first few steps.
The president of the country – Vladimir Putin – was interviewed this week and was put through his paces on the subject of all things Cryptocurrency. The interview is part of an annual session where the president speaks openly about future plans. Although the leader of the country was not convinced that there would be a Russian Cryptocurrency in the near future, there were certainly positive signs that Russia needs to seriously review the possibilities of the digital economy.
The president was certainly very much in tune with the pros and cons of the Cryptocurrency industry and suggested that the reason there would possibly not be a Russian Cryptocurrency was simply that of the fact that Cryptocurrencies are borderless and not restricted to certain countries or areas. They transcend all of these. A very realistic approach from the president.
Putin is very aware that Cryptocurrencies could be of great support for the countries financial markets especially when it comes to assisting companies, individuals and banks in the country and the sanctions imposed on them. However, the president was very quick to highlight that at present – because of the lack of regulation around Cryptocurrency mining – Cryptocurrencies are not legal tender in Russia. This is despite the fact that in 2017, he distributed several official orders to officials in the country that there must be regulations put into place in the Cryptocurrency industry and mining was included within these mandates.
Bills In Government
Putin has been very keen on seeing the Cryptocurrency market come to fruition in Russia and has been urging the government to get to work on pushing things forward. At the moment, the government is knee deep in reviewing the whole industry and seeing how it can be incorporated into the countries day-to-day processes. This can be seen from the bills that have already gone in front of the Russian government. So far two concerning Blockchain and digital rights in the Cryptocurrency market has gone through the first round last month. A further two more rounds need to be passed for the bills to be accepted as law. Both of these laws will see major changes in the Russian finance and legal industries. New words for the law will include “Tokens” and “Blockchain” as well as many other necessary phrases/words. The bills have also put into place limitations on how tokens can actually be cashed out. Only authorized financial institutions are able to manage this process with the Bank of Russia acting as the regulator for this whole element of the Cryptocurrency industry. The Bank of Russia will also oversee ICOs taking place in Russia.
A third bill focusing on Cryptocurrency mining did not pass the first round of tests.
In The Future
The future for the Cryptocurrency industry in Russia is starting to look promising. A lot of the initial steps do still need to be made and most critically the Cryptocurrency terminology needs to be installed in the legal industry. This is something that has already begun but efforts need to continue to ensure the country keeps up with the rest of the western world. But with Putin backing this new generation of a digital economy, it doesn’t look like this is going to be a major problem.