• 5 hours Russian Central Bank Eyes Gold-Backed Crypto
  • 11 hours Alberta’s Unlikely Alliance With The Nuclear Industry
  • 1 day The True Cost Of Opportunity In America
  • 1 day Why Investors Shouldn't Ignore Gold Stocks
  • 2 days Facebook Scrubs Over 2 Billion Fake Accounts
  • 2 days Dow Scrambles To Avoid Fifth Straight Weekly Loss
  • 3 days Is This The World’s First Truly Democratic Stock Exchange?
  • 3 days India’s Wealthiest Set To Hold $23 Trillion By 2028
  • 3 days First Quarter Profits Slip For World's Top Oil Companies
  • 4 days The Yuan May Be China's Biggest Weakness
  • 4 days Hedge Funds Having A Banner Year
  • 4 days Disney Heiress Asks “Is There Such A Thing As Too Much?”
  • 4 days BHP Turns Bullish On EVs
  • 5 days Investors Turn Bullish On America’s Nuclear Decommissioning Business
  • 5 days The $90M Inflatable Rabbit Redefining Modern Art
  • 5 days Huawei’s Fate In The Air
  • 5 days Tesla Slashes Prices Again
  • 6 days The Modern History Of Financial Entropy
  • 6 days Italy’s Central Bank Embraces Sustainable Investing
  • 6 days Trump Lifts Metals Tariffs To Cool Simmering Trade War
Crypto Firms Consolidate Amid Push For Legitimacy

Crypto Firms Consolidate Amid Push For Legitimacy

As cryptocurrency firms scramble to…

A Banner Year For Crypto Theft, Raking In $1.2 Billion

A Banner Year For Crypto Theft, Raking In $1.2 Billion

Crypto thieves have managed to…

JP Morgan Launches A Cryptocurrency

JP Morgan Launches A Cryptocurrency

Just one year after JPMorgan…

  1. Home
  2. Cryptocurrencies
  3. Other

Putin Sets Deadline For Crypto Regulation

Putin Sunglasses

The uncertainty for cryptocurrency in Russia is over. The government will control its production and creation entirely by 1 July.  

It doesn’t matter that the Russian Central Bank is opposed to any legalization of the crypto market. Russian President Vladimir Putin has ordered that the package of legislation—the Digital Assets Regulation Bill, which emerged last year—must be adopted by 1 July, opposition or no.

But the Russian Finance Ministry is simultaneously working on a law to criminalize the use of cryptocurrency as a substitute for fiat currencies for the purchase of goods and services.  

It’s the Ruble or bust—if they get their way.

Or, as Bank of Russia head Elvira Nabiullina put it: “There is the ruble, and everything else is a surrogate.”

"The Central Bank is against the legalization of this type of digital currency (that can be exchanged), since in this case, citizens can start actively investing in cryptocurrencies, not taking into account possible risks," said Anatoly Aksakov, chair of the State Duma Committee for the Financial Market.

The Digital Assets Regulation Bill, however, will define what ‘tokens’ are, establish procedures for initial coin offerings (ICOs) and create a legal regime for crypto mining, and cryptocurrencies themselves. That means licensed exchanges, registered with the government.

But it goes against the Central Bank’s stubborn insistence that crypto currencies shouldn’t be currencies at all.

Putin clearly disagrees. Related: What Sent Bitcoin Below $10k?

He’s got bigger designs for cryptocurrency that included—as of last December—talk of using cryptocurrency for oil trade to avoid payments in U.S. dollars and limit the impact of U.S. sanctions, taking cue from Venezuela and the ‘Petro’ coin, or China’s plans for the ‘Petroyuan’, which aims to skirt the U.S. dollar in oil transactions.

In January, the Russian Association of Cryptocurrency and Blockchain (RACIB) indicated that the government’s idea for a state crypto—the CryptoRuble--would be launched as soon as mid-2019.

As for cryptocurrency elsewhere, nations around the world are also increasing scrutiny of digital currencies. But for now, most are tip-toeing around the issue, uncertain as to how to proceed without causing too much damage.

While China shut down Bitcoin exchanges earlier this year as part of its plan to ban digital currencies to reduce financial risks, the U.S., for one, has been slower to act.

Last week, the SEC allegedly launched a crackdown on crypto exchanges, reportedly issuing "scores of subpoenas", though the regulatory body has not confirmed this. And earlier in February,  SEC Chairman Jay Clayton told a Senate hearing that he recommended the SEC “police these markets vigorously”.

On Wednesday, the SEC issued a new statement on “Potentially Unlawful Online Platforms for Trading Digital Assets”, providing a detailed warning for consumers.

Yesterday, regulatory uncertainty and news of another potential exchange hack sent cryptos spiraling downward, with Bitcoin dipping below $10,000, before recovering somewhat on Wednesday morning, but remaining below the 10k mark.

By Fred Dunkley for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment