Vladimir Putin thinks cryptocurrencies bear high risks for Russia

The government of Russia, which earlier was a huge crypto critic, has now started realizing the potential it has and is working on ways to regulate the market. 

However, the president of the Russian Federation, Vladimir Putin, seems still unsatisfied and voiced his criticism at the “Russian Calling” investment forum in Moscow. As per the report by a local news outlet lenta.ru, Putin made the following statement, translated by TheCoinRise:

“Because it is not secured by anything and is so volatile, the dangers are extremely high. We also feel that individuals who speak about the high risks should be listened to.”

Putin displayed the urgent requirement of regulation and monitoring of cryptocurrencies and noted that certain countries are looking for major adoption of digital assets.

Russia is on the way to regulating crypto

At the moment, the regulatory framework in Russia is in the very early stages. However, the country is looking at launching a central bank digital currency (CBDC) along with altering five legislative codes and at least eight federal laws for the digital ruble to take effect.

Interestingly, the president earlier during an interview said that it is “impossible” for any country to bring their digital currency as cryptocurrency is beyond countries’ boundaries.

As TheCoinRise reported, the country is also looking for applications of crypto in oil settlements and as a store of value.

Russia also lacks regulatory measures regarding cryptocurrency mining. Due to this, many claims that Russia alone generates $2 billion in crypto mining revenue annually, but on that, the government gets no tax. Recently, the Russian state Duma hinted at its plans on regulating crypto mining to avoid such situations in the future.

Crypto assets are also gaining popularity in other regions of the former Soviet Union. Kazakhstan has surpassed China as the world’s largest Bitcoin (BTC) miner in terms of hash rate, and the president is attempting to raise more revenue from such operations to help pay for the country’s expenses. He recently said that Kazakhstan is not benefitting from crypto mining.