Cryptocurrencies Are Risky and Require Regulation – Vladimir Putin Says

  • The Russian Federation President Vladimir Pout has said that cryptos carry risks.
  • He added that digital coins require regulations.
  • That comes after recent news stated that cryptocurrency transactions in Russia topple $5 billion per year.

Digital coins in Russia are still in a somewhat ‘grey zone.’  The nation is yet to issue a total ban on cryptocurrencies, like China. The Russian government is skeptical but allows cryptocurrency undertakings to proceed.

Vladimir Putin, Russian Federation president, criticized digital tokens. That was during an investment forum (Russian Calling) in Moscow.

Vladimir Admits Cryptocurrencies Are Risky

A local publication revealed that Putin said crypto has no backing and exhibits massive volatility. That translates to colossal risks. The President added that market players should consider individuals that highlight risks related to the crypto industry.

Putin added that cryptocurrencies need regulation and government monitor. That was when he admitted that digital currencies witnessed increased global adoption levels. As highlighted above, the crypto regulatory framework in Russia lacks clarity.

Nevertheless, the country plans to introduce a CBDC (Central Bank Digital Currency). However, that may not happen anytime soon since Russia requires legislative adjustment before developing a digital ruble.

Russian Transact $5 Billion Crypto per Year

Russia leads as one of the active cryptocurrency markets in the globe. That is despite it lacking a regulatory policy on crypto trading. Analysts attribute the high crypto adoption to a lack of regulation in the country.

Bank of Russia issued a report recently, estimating that total crypto transaction volume per year, amounting to $5 billion, or 350 billion. The bank also commented t5hat Russia contributed the highest site visits to the crypto exchange Binance. Russia ranks second as far as Binance traffic generation is concerned, following the leader, Turkey.

The Russian Bank also touched on digital coins mining. It stated that Russia leads the globe in BTC mining. Keep in mind that Russia ranks 3rd in BTC mining hubs as far as hash rates are concerned.

However, Russia isn’t the only Soviet Union nation that witnessed increased crypto mining and adoption. Kazakhstan ranks 2nd in BTC mining hash rate, after the US.

While writing these lines, Kazakhstan attracted many miners after China’s exit, accounting for 18% of the BTC mining hash rate, a massive surge from June’s 8.8%. Moreover, the nation’s President recently confirmed plans to launch a nuclear energy plant to support crypto mining.

By Frederic Legrand – COMEO – shutterstock.com

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