The president of Russia, Vladimir Putin stated in a meeting earlier in October that cryptocurrencies provide a backbone for fraud and money laundering to occur on a large scale.
Speaking at a meeting, Putin stated that in a broad sense, there should be regulation in the market of cryptocurrencies, and that the lack of regulation would lead to increased amounts of crime occurring in the industry. He stated that Russia would be looking at international examples of regulation to inform what they would put in place.
This is not the first time that Putin has spoken out about cryptocurrencies. In 2015, the president stated that cryptocurrencies had “serious, really fundamental issues related to its wider usage.” The current stance that Putin has seems slightly different from his older stance. Putin was quoted stating that “virtual currencies or cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries. At the same time, use of cryptocurrencies also carries serious risks.”
Putin in this quote shows some backing of the idea of cryptocurrencies, but does offer the idea of regulation, something that has been echoing across the financial world for quite a while. Putin further stated that “”We should develop such a regulatory system on the basis of international experience that will make possible to make relations in this sphere systemic, definitely protect interests of citizens, business and the government, and provide legal guarantees for work with innovative financial instruments.”
The comments from the president of Russia come after a high up public official for one of Russia’s central banks stated that they will support the efforts to block access to various cryptocurrency exchanges. Only time will tell what occurs in the country and around the world regarding cryptocurrencies.