Putin scolds crypto-currency, but admits Russia needs to give it a try

Russian President Vladimir Putin said that crypto-currencies create possibilities for money laundering, tax evasion, financing terrorism and contribute to the development of fraudulent schemes.

Speaking at a meeting dedicated to the role of crypto-currencies in the modern world, President Putin noted that issues of the introduction of digital technologies in the financial and banking sphere have become particularly important for the whole world lately as new opportunities continue to emerge.

"In some countries, crypto-currencies have already become a full-fledged method of payment, an investment asset, but the use of crypto-currencies also carries serious risks, and we know the position of the Central Bank of the Russian Federation on the subject," Putin said.

He mentioned such risks as a possibility of laundering capital obtained by criminal ways, evading taxes and financing terrorism, not to mention the dissemination of fraudulent schemes that may cause harm to ordinary citizens.

Crypto-currencies are issued by an unlimited circle of anonymous entities, and their buyers are likely to be involved in illegal activities.

"In the event of a system failure or the inflation of "bubbles," as they say now, there will be no legally responsible entity available. This is a very serious thing that we need to take into account," Putin said.

At the same time, the Russian president believes that one should establish the circulation of crypto currency in Russia, because the country needs to take advantage of new technological solutions in the banking sector. At the same time, he added, one should not build new barriers, but create necessary conditions for the further development and improvement of the national financial system.

"Relying on the international experience, we should build a regulatory environment to systematize relations in this sphere and protect, of course, interests of our citizens, businesses and the state, to provide legal guarantees to work with innovative financial instruments. Many countries look for approaches to regulate the circulation of crypto currencies, they only start creating necessary legislative conditions and the legislative regulatory framework," Putin said.

Prior to the above-mentioned meeting, Putin's press secretary Dmitry Peskov said that there would be no decisions taken at the meeting. "You know that this subject has been on the agenda lately, and many countries already use crypto-currency as a financial tool, but no one knows yet how to regulate this means of payment and means of investment yet," he said.

The chairwoman of the Central Bank of the Russian Federation, Elvira Nabiullina, spoke against the legalization of crypto-currencies on September 14, having called them a financial pyramid that may collapse at any moment.


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Author`s name Dmitry Sudakov