Information on Russia’s Regulation of Cryptocurrency Surfaces

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The Russian Federation has officially decided to regulate the circulation and mining of cryptocurrency, CCN reported Tuesday.

Russia Outlines Scope of Crypto Regulation

A meeting of Russian officials that included President Vladimir Putin concluded that both the supply and mining of digital assets will come under the purview of central regulators. According to TASS news agency, finance minister Anton Siluanov stated that the government should “control the process of cryptocurrency emission and its circulation.”

According to reports, Russians will not be allowed to mine cryptocurrency, a process that will be maintained by a central authority. Holders of the digital asset will be allowed to exchange it for Russian rubles at any time.

Last week, Russian authorities said they would move to block cryptocurrency exchanges. It later emerged that the Kremlin decided to pursue a regulatory clampdown on the digital asset class rather than a blanket ban.

Several nations have already chimed in on the cryptocurrency debate, each arriving at different conclusions. For example, cryptocurrency is a recognized payment method in Japan, but has been blocked outright (at least for now) in China. South Korea’s approach is somewhere in the middle: it has banned initial coin offerings (ICOs), but not cryptocurrency trading. The regukatory environment will further evolve as nations come to grips with the digital currency phenomenon.

Rise of the ‘CryptoRuble’

Earlier this week, Russian communications minister Nikolay Nikiforov said that a state-issued ‘CryptoRuble’ is set to be unveiled. Several news outlets, including CCN and Investopedia, reported the matter.

Nikiforov pointed to neighboring Kyrgyzstan as a chief motivator for moving swiftly on this matter. The Eurasian Economic Commission member is planning to launch its own gold-backed national cryptocurrency.

Despite all the regulatory concerns surrounding digital currency, Russia views it as a potential opportunity to diversify its economy away from oil.

Featured image courtesy of Shutterstock 

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi