With a recent change in Russian regulations, reports have been released stating that Russians are prohibited from cryptocurrency mining. This process will now be now be done by a central authority. Although Russians are not allowed to mine cryptocurrency, they can still exchange the cryptocurrency for Russian Rubles.
This was discussed at a government meeting where it was decided that supply and mining will be conducted under the surveillance of central regulators. President Vladimir Putin was also attending the meeting amongst other high ranking Russian Officials. TASS news agency, finance minister Anton Siluanov also said in a statement that “the government should control the process of cryptocurrency emission and its circulation.”
Following the recent surge in Bitcoin value, it was expected that Russia would soon announce it wants to create its own official state-controlled virtual currency. So with the Russian finance ministry working together with the central bank, President Putin believes that a successful framework will be developed to regulate cryptocurrencies such as Bitcoin.
Putin and the other government officials believe that this new cryptocurrency framework and regulations will help Russia move away from the oil trade, thus leading up to more financial opportunities in the near future.
With all of the regulations still being drafted, analysts informed the cryptocurrency community that these new cryptocurrency laws and regulations will be in place before the end of this year. The leader of the State Duma’s financial markets committee, Anatoly Aksakov even said in his announcement to Russian media that “”If we agree on the main approaches in the coming week, I think that by autumn, by the end of the fall session, we will be able to adopt this law in order to provide a legal space for the development of this market.”
A Broader Trend
Russia is however not the only country debating on improvising new cryptocurrency regulations as several other countries have also pitched in on the cryptocurrency debate. One of the countries also currently debating their cryptocurrency future is Japan. Although Japan allows cryptocurrency trade and mining, other Asian countries such as China wants nothing to do with cryptocurrency at this moment.
This new Russian regulated cryptocurrency will give birth to Russia’s own new digital currency according to Russian communications minister Nikolay Nikiforov. ‘CryptoRuble’ as it would be known as have already been discussed on leading news agencies such as CNN.
These new regulations might not sit well with a lot of traders and investors within Russia’s cryptocurrency community, the government and central bank will continue to move forward with the new regulations as they see it as a certainty for financial growth for the nation.
A lot of other cryptocurrency experts on the other hand believe that this is a positive move from the government. They say that this will encourage people to explore the cryptocurrency trade. Now with cryptocurrency that has support from the government and lawful regulations, traders and investors should feel safe when getting involved with cryptocurrency. It won’t be a surprise if we see other countries following Russia’s decision in the coming months.