Putin Gives Russia Five-Point Plan For Cryptocurrency and Blockchain Issues

Blockchain, FinTech, Innovation, Investing, News, Regulation | October 26, 2017 By:

Russian leader Vladimir Putin has made five Presidential orders concerning cryptocurrency, including one that would require miners to register with the state.

Putin’s orders come as Russia apparently has set its course on cryptocurrency after months of bickering and seemingly contradictory positions.  His orders appear to set a deadline of next July for Russia to define how cryptocurrency fits into the existing financial order.

One key requirement is that the regulators need to provide a framework for registering cryptocurrency miners. That method is seen as a vehicle to an eventual tax on their activities, which currently are wholly unregulated. Putin also asked his finance ministers to determine how initial coin offerings should be monitored and regulated by the government, using initial public stock offerings as a model.

Putin asked for guidance on how new companies and blockchain developers can demonstrate their proposals to the Bank of Russia. That task has been speeded-up for an end-of-this-year delivery.

Finally, Putin requested a way to bring countries in the Eurasian Economic Union who have been experimenting with blockchain and cryptocurrency into the Russian financial plans. Khazhakstan has announced plans for its own cryptocurrency, and Russia is reportedly considering doing so as well. Reconciling such ventures will be a priority for Russia as it seeks to regulate its system.