Russia Poised to Follow Japan in Legitimizing Cryptocurrencies

Russia’s Finance Minister Anton Siluanov today said that his country will take steps to legitimize Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term through government registration and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, which makes Russia the next nation to take such a bold decision after Japan.

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In a bid to protect Russian citizens and firms from the perils of Bitcoin, the finance ministry will draw up a set of bills that will give digital currencies legal grounds in the country.

According to Reuters, this will include defining procedures for transacting the cryptocurrencies, and will also impose a registration requirement on those willing to buy these assets. Nevertheless, the new proposal falls short of declaring which cryptocurrencies will be treated as legal tender.

The finance minister did not elaborate on what specific criteria would look like and which transactions would be subject to new regulations.

Although getting into the legalization process, Siluanov warned investors against risks of digital currencies. He said his ministry’s task was to “make investments into such instruments regulated. We must make an organized market out of the black market.”

Siluanov explained why the Russian authorities, who have been trying over the years to ban Bitcoin, made this U-turn, saying: “The state understands indeed that crypto-currencies are real. There is no sense in banning them, there is a need to regulate them.”

Bitcoin recently hit fresh record highs around the $5000 mark, marking a more than 300 percent rally year-to-date. There are optimistic forecasts for the currency, with some analysts expecting the price to go as high as $7,000 this year.

The surging prices and huge market capitalization have made financial authorities around the world increasingly interested in ways to regulate the sector, especially as more retail investors are getting involved in the market.