Categories: Altcoin NewsBitcoin NewsNews

Russia’s Dmitry Peskov: Cryptocurrency Cannot Be Allowed Now

The latest crypto comments coming out of Russia aren’t good. While certain industry regulations are being looked at, authorities believe that there is no place for virtual currencies until a clear guideline is developed.

Russia has a very fickle relationship with cryptocurrencies. One day you hear that crypto mining is expanding in the country, the next week you hear that 22 Bitcoin ATMs were seized in various parts of the country. The latter development has sparked concern as cryptocurrencies haven’t actually been outlawed in Russia.

Hope through Regulations in Russia

There have been some instances that gave crypto enthusiasts hope though. Authorities in the country are seeking to regulate aspects of the industry by imposing Know-Your-Customer (KYC) requirements for selected crypto transactions. Financial authorities are also looking to track Bitcoin transactions in a bid to try and prevent fraud and terror financing.

In addition, a draft law states that crypto transactions can only be completed by a previously licensed authority. While these tight regulations may be viewed in a negative light, it does show that the country is looking at a future with crypto in it.

However, President Putin’s special representative on digital and technological development, Dmitry Peskov, has given an update which may delay any celebratory dances. Sputnik News recently reported that Peskov said:

The emission and circulation of cryptocurrency cannot be allowed now. This contradicts the state’s basic function. The consistency is important. If we adopt a draft legislation on the principles of work with cryptocurrency at a general level, then we can discuss the implementation of those principles in ordinary life. But it is wrong to go the other way round.

Draft Laws in the Pipeline

While industry definitions and regulations are still very much up in the air, steps have been taken to obtain some level of clarity. Three bills were previously submitted to the country’s lower house with the second reading scheduled for later this year. Whether or not these are accepted and put into law should determine the future of cryptocurrency in the country.

Russia’s Deputy Finance Minister, Alexei Moiseev, had also suggested that cryptocurrency mining should be seen as a taxable activity. Similarly, Iran has recently declared crypto mining in the country as a legal industry. This move, in combination with varying other factors, even caused the price of Bitcoin to increase quite substantially in the country.

Peskov’s comments come just a day before the Eastern Economic Forum (EEF). The event, which seeks to encourage foreign investors to contribute to the Russian Far East region, is scheduled to run between the 11th and 13th of September.

Do you think that cryptocurrency has a legal future in Russia? Let us know in the comments below!

Images courtesy of Shutterstock

Tags: Crypto Miningregulationsrussiavladimir putin

Recent Posts

  • Press Release

KuCoin Launches Platform 2.0 with Advanced API and Various Order Types

KuCoin, one of the most popular cryptocurrency exchanges, has officially launched KuCoin Platform 2.0. In addition to brand-new interfaces for…

11 hours ago
  • Bitcoin News
  • News
  • Trading

Bitcoin Price Analysis: Dips In BTC Remain Attractive To Buyers

Bitcoin price rallied recently after it broke the $3,600 resistance zone against the US Dollar. There was a break above…

17 hours ago
  • Altcoin News
  • Bitcoin News
  • Ethereum
  • News

Exciting News! For 40 Days, Bitcoin is in a Price High – Would it Hit 5,000 USD?

This month, Bitcoin’s path reached another breakthrough when on Tuesday the famous Cryptocurrency reached the 4,000 USD line -- for…

18 hours ago
  • Bitcoin News
  • Blockchain Technology
  • News

Analysts Expect Another Breakout as Bitcoin (BTC) Nears $4,000

Digital currency assets in key markets across the globe have shown a very remarkable performance in just less than two…

20 hours ago
  • Bitcoin Mining
  • Bitcoin News
  • News

30 File Complaint Against Crypto Mining Firm in Thailand for Alleged Scam

A possible cryptocurrency mining scam involving an estimated 42 million Thai Baht (USD $1.34M) has been exposed in Thailand when…

23 hours ago
  • Sponsored

How Is GG World Lottery Different from Unregulated Crypto Lotteries?

It’s true that the global lottery industry represents a vast market worth billions of dollars. It’s also growing. However, the…

1 day ago