Russian President Putin still believes that Crypto is very risky and needs to be monitored more closely

The Russian President remains skeptical of Crypto, despite the growing number of Crypto users in Russia. Putin noted that they did not support CRT and that the sector should be closely monitored.

Following the implementation of China’s mining ban, Russia has become one of the important countries for Crypto mining .

The most powerful man in Russia, Vladimir Putin, has made it clear that he does not trust Crypto. Russia is a major contributor to Bitcoin’s hash rate, making it a giant in the entire ecosystem.

Vladimir Putin has criticized the volatility of Crypto, calling it a risk-taking flaw. The Russian president made his thoughts known in front of a powerful delegation at an investment forum in Russia this week.

“ Crypto is not backed by anything, volatility is huge, and risk is very high,” he noted. “We think we need to listen to those who are talking about significant risks .”

Putin used the opportunity to call for greater oversight and scrutiny of the industry to protect investors.

Crypto is uncharted territory for Russian regulators, who are just beginning to take their first steps in regulating the industry.

In 2020, Putin signed the "Law on Digital Financial Assets", which stipulates that transactions with Crypto are legal, but restricts it as a means of payment .

Last month, Russia’s Prosecutor General’s Office recommended that lawmakers pass a law that would bring Crypto under the jurisdiction of the Criminal Code. Currently, Russia has no laws regarding Crypto mining, although the country has received a large number of miners who have relocated due to the ban.

Russia is expected to soon introduce legislation to tax the nascent industry, which is said to generate $2 billion a year.

In the absence of any legislation, Crypto adoption has surged in Russia, Ethereum founder Vitalik Buterin is seen as a cult hero, and Russians have surpassed $5 billion in annual trading volume.

In October, Vladimir Putin said that he believed cryptocurrencies had some value, but he could not foresee their utility in oil trade.

“I believe that Crypto is valuable, but I don’t believe it can be used to trade oil,” Putin said, reiterating his stance that Crypto has not yet found any support and that it may not be appropriate to include the asset class in discussions about oil .

Following the Colonial Pipeline and JBS hacks, Putin assured U.S. President Joe Biden that he would be willing to work with the United States to hunt down cyber criminals who use Crypto to facilitate crimes after U.S. law enforcement agencies said they had evidence that the criminals were operating from within Russia.

The original text comes from zycrypto, compiled and edited by Blockchain Knight. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.