According to Russian President Vladimir Putin, the crypto market at the moment carries some risks and the level of regulation for the cryptocurrency industry will depend on the risks associated with it.
Vladimir Putin expressed his opinion on VTB Capital Forum.
According to him, digital assets are highly volatile and carry significant risks.
“As far crypto is concerned although in some countries or economies cryptocurrencies are being used more widely and in some, they are prohibited. But my point of view is that crypto is not backed by anything, the volatility is high, the risks are high. I think that you need to listen to those who talk about high risks.”
He also said that he does not consider cryptocurrencies a threat to central banks’ digital currencies (CBDC). He stated that Russia will react to the development of the cryptocurrency market based on risk factors associated with cryptos. The President of Russia specified that the crypto industry will definitely be regulated, but in a format that will allow the crypto to develop without banning them altogether.
In an October interview with CNBC, Vladimir Putin said that “cryptocurrencies have a right to exist.” Vladimir Putin told CNBC: “In order to transfer funds from one place to another – yes, but to trade especially to trade in energy resources, in my opinion, is still premature.” The head of state at that time explained that cryptocurrencies are not backed by anything and are unstable. Therefore, it is premature to consider them as a settlement instrument when trading in oil, primary materials, or energy sources.
In September, Russian President Vladimir Putin instructed the Ministry of Finance of the Russian Federation and the Central Bank to prepare proposals for regulating digital assets and digital currency as part of the National Anti-Corruption Plan.
In March, Putin authorized the Russian Prosecutor General’s Office to take measures to prevent illegal international transactions with digital financial assets.