Volatility Is Colossal: Vladimir Putin Calls for Greater Crypto Monitoring, Regulation

Vladimir Putin says people who speak about the dangers of investing in the crypto market must be listened to.

By Radhika Parashar | Updated: 2 December 2021 13:52 IST

Volatility Is Colossal: Vladimir Putin Calls for Greater Crypto Monitoring, Regulation

Photo Credit: Facebook/ Vladimir Putin

Russian President Vladimir Putin believes cryptocurrencies are too unstable

Highlights

The statement comes amid Russia considering a national digital currency
Several legal reforms and fresh laws required in Russia to regulate digit
Putin was speaking at an investment forum

Russian President Vladimir Putin expressed criticism of the crypto space calling the market highly risky. While speaking at the Russian Calling investment forum in Moscow, Putin called for greater monitoring and regulation of the crypto-related activities in Russia. The statement comes at a time Russia is considering the launch of its national digital currency, backed by the central bank. At least eight laws and five codes will have to be changed in Russia before it gets its national digital currency.

“It is not backed by anything, [and] the volatility is colossal, so the risks are very high. We also believe that we need to listen to those who talk about those high risks,” Russian publication Lenta.ru quoted Putin as saying.

Earlier in October too, Putin had voiced doubts about the space when he said that cryptocurrencies were too unstable to be used to settle oil contracts for now. He was asked if he could see oil contracts being denominated in cryptocurrencies instead of US dollars in the future.

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Putin's statement comes just days after Danniil Egorov, the head of the Russian Federal Taxation Service (FNS) said cryptocurrencies, if not monitored properly, could majorly dent the national treasury.

As part of the regulatory framework Russia is mulling ways to react to crypto tax evasion cases, in case they surface.

Presently, around $2 billion (roughly Rs. 14,984 crore) in revenue is generated from crypto activities in Russia without being taxed, a report by CoinTelegraph said.

China, Russia are some of the countries that banned cryptocurrency

As of January 1, 2021, cryptocurrencies were declared “allowed” in Russia – but not to be used as an exchange for goods and services. Russians can mine, trade, and hold cryptocurrencies – but using them as a payment option can push people behind the bars, as per a report by Forbes.

Along with Russia, other nations are also looking at ways to stitch taxation with cryptocurrencies.

In India, for instance, the federal finance ministry has formed a new committee to find out if income made by cryptocurrency trading could be taxed.

Earlier this month, US President Joe Biden also signed a new law that includes tax reporting provisions that apply to cryptocurrencies.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Vladimir Putin, Cryptocurrency

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More