Russian President Rep Indicates Country Is Unprepared for Cryptocurrency Use

Rep for Russian President Indicates that the Country Is Still Unprepared for Use of Cryptocurrency

According to a news report in Russia, a representative for the president Vladimir Putin has indicated that the country is unprepared for cryptocurrencies to start being issued and circulated. The Special Representative, Dmitry Peskov, explained his side in this statement:

“From the start, we have not legally suppressed blockchain and cryptocurrencies, and are trying to bring them into a normative space. But the government must give fair warning, that there is a high risk of ending up with an MMM 2.0 [famous pyramid scheme that existed in 1990s].”

The Russian Central Bank has maintained a relatively soft position on crypto, but Peskov believes it might be softer than necessary. He said,

“The threat level is so high that the position could be stricter.”

He continued on, discussing how cryptocurrency does not match up with their principles. He said,

“The issuance and circulation of cryptocurrencies cannot yet be permitted. It contradicts the basic functions of government. Order is important. If we adopt a bill on the principles of working with cryptocurrencies on the government level, then we can discuss the implementation of those principles in daily life. But it’s not right to do this in reverse.”

Based on the current situation, Peskov thinks that the country needs to establish a regulatory stand that can evaluate “all aspects of work” with cryptocurrency. Peskov was officially named a special representative by a decree from the president in July 2018, though he is also the official Director of Young Professionals at the Agency for Strategic Initiatives.

Vladimir Putin decided to address these inquiries himself earlier during the year at an annual live question and answer session. Specifically, he turned down the option of Russia having its own cryptocurrency, because the definition of this decentralized asset inherently shuts that option down. Furthermore, even though government does not actually regulate mining in the area, Vladimir Putin explained that they are extremely cautious.

Presently, the government lacks defined laws regarding cryptocurrency, mining, and ICOs, though there is a draft law “on Digital Financial Assets,” which was accepted in May at the first reading. The next reading is supposed to happen in autumn this year.

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