Russian president says crypto ‘bear high risks’

The President of Russia shared his negative stance on crypto once again and said that cryptocurrencies bear high risks. 

On 1 January 2021, Russia introduced its crypto law to provide legal status to the crypto trading industry in the Russian Federation except for the use of crypto in payment methods. But still, the officials of the Russian government are trying their best to bring new rules and laws to prohibit the circulation of the crypto industry. 

On 30 November, speaking on the “Russian Calling”, Vladimir Putin, President of the Russian Federation, raised his voice against the crypto and crypto industry. Through the statement, Mr president criticized and indirectly suggested to the investors to remain away from it. 

Putin said that “It is not backed by anything, (and) the volatility is colossal, so the risks are very high. We also believe that we need to listen to those who talk about those high risks.”

Putin asserted that there is a huge need for restriction and regulation to closely monitor this crypto industry, which is getting better support from other countries. 

At present, the crypto regulation framework of Russia is in its initial phase and not much better to cover the whole crypto industry. And also the country is looking towards the development of Central Bank Digital Currency (CBDCs) but the government of the Russian Federation needed to change at least eight federal laws and five legislative codes to bring their own digital Ruble.

One main important thing that can be seen in the Russian crypto law, it is not able to cover crypto mining industry regulation. According to reports, crypto mining firms generated around $2 billion a year but they didn’t pay tax to the government. 

However Russian officials are trying to list the Crypto mining industry in the business enterprise services but the Central Bank of Russia raised their concern against this decision and said that crypto is already a very risky thing and further giving legal support to the crypto mining business, will end up into a more risky step. But still, authorities are doing their work, to grab tax from the crypto mining firms.

Read also: 80% experienced crypto traders making money: survey