Putin: Cryptocurrency regulation must protect business, citizens

BOCHAROV RUCHEI, Sochi, Oct 11 (PRIME) – Russia must build up regulation of cryptocurrencies in such a way that interests of households, business, and the state are protected, but without excessive barriers, President Vladimir Putin said late on Tuesday at a meeting dedicated to cryptocurrencies.

“We know that many countries are looking for approaches to regulation of cryptocurrency turnover and start creating required legal conditions and a law basis. Basing on international experience, we should shape such a regulatory environment that would systematize relations in this industry, protect interests of households, business, and the state, give guarantees for work with innovative financial tools,” Putin said.

“It’s crucial not to erect excessive barriers, but create necessary conditions for further development and improvement of the national financial system.”

The use of cryptocurrencies imply serious risks because it is a possibility to launder money, evade taxes, finance terrorism, and expand fraudulent schemes, whose victims could be ordinary people, the president said.

“Cryptocurrencies are issued by an unlimited number of anonymous subjects, and buyers of cryptocurrencies can be involved in illegal activities, and there is no cover for cryptocurrencies. If the system fails or ‘bubbles’ are inflated, as it’s fashionable to say now, there will be no legally responsible subject. It’s such a serious issue that we should keep it in mind while discussing the matter,” Putin said.

Earlier in October, Central Bank Chairwoman Elvira Nabiullina said that the regulator is still against legalization of cryptocurrencies as a money surrogate and sees private money unacceptable.

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