Monday, January 17, 2022

Vladimir Putin says cryptocurrencies ‘bear high risks’

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On Tuesday, Vladimir Putin, President of the Russian Federation, voiced his criticism on the “Russian Calling” funding discussion board in Moscow. According to native information outlet lenta.ru, the president made the next remarks, as translated by Cointelegraph:

“It’s not backed by something, [and] the volatility is colossal, so the dangers are very excessive. We additionally consider that we have to take heed to those that discuss these excessive dangers.”

Putin referred to as for the larger monitoring and regulation of cryptocurrencies and identified that sure nations worldwide are seeing vital adoption of digital currencies. At the moment, cryptocurrency regulation continues to be in its infancy in Russia. Though the federal government is contemplating the launch of a central financial institution digital foreign money, not less than eight federal legal guidelines and 5 legislative codes should be modified for the digital ruble to take effect.

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Moreover, no regulation exists within the nation relating to cryptocurrency mining. This has led some to say that $2 billion in crypto mining revenue is generated yearly in Russia, however on that, no taxes are paid. As a result of lack of a regulatory framework, cryptocurrency use has soared amongst unusual Russians, with transactions surpassing $5 billion each year.

In different components of the previous Soviet Union, cryptocurrencies are additionally quickly gaining in traction. Kazakhstan has turn into the world’s largest Bitcoin (BTC) miner by hash charge, and its president is seeking to collect more taxes from such actions to fund the nation’s bills. In Ukraine, the federal government is actively encouraging legal crypto operations. Final yr, the Polish city of Olsztyn started adopting the Ethereum (ETH) blockchain for emergency providers.