Russian President Vladimir Putin will not crack down on cryptocurrencies as China has recently. He expressed his tolerance for digital currencies in an interview by CNBC, which was posted on the Kremlin website on Thursday.
The cryptocurrency has attracted increased scrutiny from regulators around the world, as it is often used in financial crimes and money laundering. Regulatory reasons are also behind China’s total crackdown on digital coin mining and trading. On September 24, China announced a crackdown in an effort to suppress illicit activities and financial speculation, resulting in a complete ban on all cryptocurrency transactions and mining.
According to Putin, cryptocurrencies still “have the right to exist and can be used as a means of payment,” but he also mentioned that it is too early to talk about using digital currencies for trading Russian oil and other commodities.
“There are no plans for a complete ban similar to China’s,” said Deputy Finance Minister Alexei Moiseev. But in the past the Bank of Russia has repeatedly warned investors that the crypto market is highly volatile. Russia does not allow crypto to be used for domestic payments, despite calls for the partial lifting of this cryptocurrency payment ban.
“Too soon”, potentially means Russia is not completely at the expense of using cryptocurrencies to trade in exported goods or oil in the future. Russia has been looking for alternatives to trading in dollars since the country was sanctioned in 2014, following Crimea’s annexation.