Cryptocurrency for the Future: Russia Backing up the tech, denying any Ban Possibility
Strong signals are out there that Russia is in no position to ban cryptocurrencies with the raising popularity of blockchain and the coins. The stand is supported even more by the President Vladimir Putin as he declare backing up the development of the technology in the Russian Federation. This comes due the reason that it could open doors as a diversifying factor for its economy, deviating its away further from hydrocarbons.
On the other side, The Russian Finance Ministry – has pushed the central bank concerns further deep to regulate the digital currency sector and deliver legal cover.
“Russia’s Finance Ministry published draft legislation to regulate operations using cryptocurrencies, putting it at odds with the central bank’s resistance to allowing their exchange into rubles and other currencies,” writes Bloomberg. “Licensed operators would be able to validate conversion of cryptocurrencies into other digital instruments as well as rubles or foreign currencies, according to the bill. Digital assets themselves wouldn’t be deemed as legal means of payment in Russia, while the proposals also set out measures for domestic regulation of initial coin offerings,” they added.
“It should be noted, that the use of cryptocurrencies in the territory of the Russian Federation as a means of payment is not being suggested,”
The recent development towards cryptocurrencies in Russia could also be tied up with the presidential election that will take place in March, and it would be of best not to push such a constituency.
“Trades with cryptocurrencies have become so widespread, a legal ban on such activity would lead to the creation of conditions for the use of cryptocurrencies as an instrument to service illegal businesses, launder criminal incomes, and finance terrorism,” added the ministry.