Russian finance minister working on regulatory groundwork for cryptocurrencies to end their ‘black market’ use
As we have mentioned in many articles here in the past, it was only a matter of time before individual governments begin to focus on cryptocurrencies and the myriad of other securities sprouting up on the blockchain. ¬†In Japan for example, the government has readily accepted cryptos like Bitcoin as currency and are allowing their use within their general economy.
However for China, Russia, and with the other members of the BRICS coalition, acceptance of cryptocurrencies are coming with a price. ¬†And that price is manifesting in strong regulations which seek to legitimize cryptocurrencies but under the authority and oversight of the government.
Russia is developing a legal framework that would regulate the purchase of cryptocurrencies, Russia‚Äôs finance minister says, adding that the government wants to legitimize cryptocurrencies and wind down the black market.
Speaking at the II Moscow Financial Forum, Russian Finance Minister Anton Siluanov reassured Russian fans of Bitcoin and other cryptocurrencies that the government has no intention of outlawing cryptocurrencies.
‚ÄúThe state understands indeed that crypto-currencies are real. There is no sense in banning them, there is a need to regulate them,‚ÄĚ¬†the minister said.
Instead, the Russian financial authorities are now working to bring operations with cryptocurrencies into compliance with Russian law. The legislation, to be ready by the end of the year, envisions registration of would-be buyers and a clear definition of buying procedures and rules of circulation.
Explaining the need for tighter regulation, Siluanov pointed out that those investing in virtual money are subject to greater risks due to the lack of external regulation.
‚ÄúWe must make an organized market out of the black market,‚ÄĚ¬†he said. –¬†Russia Today
Both Russia and China have accepted the reality of cryptocurrencies, but not in their original scope as a de-centralized medium of exchange. ¬†And as such they are focusing on a slightly adopted axiom that goes if you can’t beat them, then co-opt them.
Cryptocurrencies in general are expected to play a major role in the future of finance, but only in an environment in which most sovereign governments can impose a modicum of controls over them. ¬†And like with China, who is halting the creation of naked ICO’s, or with the U.S., who is working to monitor cryptocurrency use by controlling elements of crypto exchanges, the original advantages that cryptocurrencies were supposed to provide are slowly being eroded as states seek not to dissuade their use, but only in how they are used.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.