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The President made it to the blockchain: how the authorities will control cryptocurrency

The Russian authorities decided to take control of the issue and circulation of cryptocurrencies, but at the same time to ban mining in the country. While the specific parameters of the regulation of digital money is not named, but known the time when they will appear — the corresponding law should be adopted before the end of 2018. However, writing such a document was waiting for this year, and attempts to introduce cryptocurrencies in the legal field, there have been a couple of years and so far no to no avail. It is obvious that the authorities are wary active dissemination of virtual money in the world and want to avoid possible risks. At the same time, they are, according to experts, will try not to miss bonuses related to the taxation of transactions in the digital currency.


photo: pixabay.com

Recall that just a couple of days ago at an economic meeting in Sochi, President Vladimir Putin voiced “pain points” of the new monetary reality, which is involved have all advanced the world. In his opinion, the use of the cryptocurrency may be associated with money laundering, tax evasion, proliferation of fraudulent schemes, the financing of terrorism which victims can become ordinary citizens. To minimize the risks requires government regulation of virtual money, which has already reached many countries with developed financial markets – such as Japan and the United States. However, where the regulators chose not to ban cryptocurrencies and related transactions “from sin” – in China. However, the Russian President has urged “not to write any unnecessary barriers”. This may mean that cryptocurrency will still be allowed to use in our country, but with the participation of the state.

At the meeting with the President was attended by Minister of Finance Anton Siluanov and the head of the Central Bank Elvira Nabiullina, their departments will focus on the development of cryptocurrency regulation, along with the legislature. But if the Ministry of Finance has taken a low-key and loyal position in relation to the digital money, the Central Bank are more categorical, the Russian regulator was particularly worried after a ban on cryptocurrencies in China. The head of the Bank of Russia even called them “quasi-money”, the use of which could undermine the currency.

Obviously the Russian authorities will pay attention to international experience of regulation of cryptocurrency. But first, it will be necessary to determine the concept of this financial tool. Money in the conventional sense can not be called, closer to the essence of cryptocurrency definition — a means of payment, investment asset, a commodity. In addition, there is the concept of mining — “mining” digital money for investment and profit. What to do with him, the Finance Ministry has invented: it is proposed to allow these activities to legal entities and individual entrepreneurs (legal entities easier to take taxes) and to introduce mandatory registration for them.

“The President’s position can be interpreted as a sign that finally put an end to long dispute: whether legal regulation of cryptocurrency in General. It became clear that the authorities seek to minimize risks and preserve the benefits of the blockchain. Cryptoamnesia have matured before the introduction of regulation, with it, market players will be at the natural limit existing freedoms,” – said the “MK” head of the working group on risk assessment of turnover cryptocurrency of the state Duma of the Russian Federation Elina Sidorenko.

Of course, now about digital money say all, but any significant event in this market are able to dramatically bring down rates of cryptocurrencies. One of the last shocks for bitcoin happened when China banned the cryptocurrency circulation in the country: the most famous virtual coin dropped in price by 35% from $5000 to $2500. The final collapse of kripalu soon predicted the former chief economist of the International monetary Fund Kenneth Rogoff. He called “sheer madness” the assumption that bitcoin and other cryptocurrencies will displace from the market the official money issued by Central Banks. In his view, regulators will sooner or later “put his hand” in the markets of cryptocurrencies: “not invented by the private sector, the government wants to control it”. One way or another, but until bitcoin, despite all its limitations, again feels good: he not only repelled the September drop, but set on the eve of a new absolute course record – $5100 for one virtual coin.

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