Legal in Russia? Crypto Markets in Favor With Vladimir Putin
Cryptocurrency seem to be gaining credibility by the day and now Russia seems to have been pushed into taking this digital product into consideration. This can be seen from the plans by the Russian authorities to put into place legislation by the summer of 2018.
Vladimir Putin Sets the Deadline
This report has been revealed through an official publication by the Russian parliament, dated March1st. According to this notice, Vladimir Putin, the Russian President, has taken the initiative himself and set the deadline by which relevant policies that will legalize cryptocurrency are put in place. The deadline set by the President is July 1st.
So far, there are at least two draft laws that have been put in place regarding blockchain technology. These draft laws will deal with, among other things, legal guidelines through which Initial Coin Offerings will be issued. According to the ministry of finance in the country, this is expected to be fast-tracked to ensure that everything is in place by the set deadline. In addition, the Russian central bank has also prepared another draft law that will deal with issues related to crowdfunding.
Accord or no Accord?
According to the report, the two authorities in the country have come to an agreement that there is need to have a regulatory move on cryptocurrencies in order to streamline the market through better oversight. However, there seems to be one major contradiction with regards to cryptocurrency exchanges that operate in the country. Basically, the central bank doesn’t seem to be too keen on paying attention to investors and traders that participate in cryptocurrency.
Based on this lack of proper consensus, Antoly Aksakov, the Chairman for the State Duma Committee for Financial markets had this to say:
“The central bank is against the legalization of this type of digital currency, since in this case, citizens can start actively investing in crypto-tools, not taking into account possible risks.”
However, there is another bill in the offing regarding digital assets, that is set to be submitted to parliament some time this month. This bill will focus more on creating the right governance rules regarding cryptocurrency mining. This will ensure that any individual entrepreneurs will have to get into mining activities through legally constituted entities.
What do you think about Russia’s move to legalize cryptocurrency markets? What are the risks involved in such a move by the government? Let us know your thoughts in the comments section below.