Russian President Vladimir Putin will not crack down on cryptocurrencies as China has recently done. He expressed his tolerance for digital currencies in a CNBC interview published on the Kremlin website on Thursday.
Since cryptocurrencies are often used in financial crimes and money laundering, they are subject to increasing scrutiny by regulatory agencies around the world. Regulatory reasons are also the reason behind China’s comprehensive crackdown on digital currency mining and trading. On September 24, China announced its crackdown on illegal activities and financial speculation, resulting in a total ban on all cryptocurrency transactions and mining.
According to Putin, cryptocurrency still “has the right to exist and can be used as a means of payment,” but he also mentioned that it is too early to talk about using digital currency to trade Russian oil and other commodities.
“There is no plan for a comprehensive ban similar to China,” said Deputy Finance Minister Alexei Moiseyev. However, the Bank of Russia has repeatedly warned investors in the past that the cryptocurrency market is extremely unstable.Russia does not allow cryptocurrency Domestic payment, Although there are calls for a partial lifting of this cryptocurrency payment ban.
“It’s too early” may mean that Russia is not completely opposed to the use of cryptocurrency to trade commodities or oil in the future. Since Russia was sanctioned after its annexation of Crimea in 2014, Russia has been looking for alternatives to U.S. dollar transactions.