Vladimir Putin Orders Russia to Adopt Crypto Regulations and Develop Digital Economy

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Russian president Vladimir Putin has set a firm deadline for the country to begin enforcing regulations on cryptocurrencies, starting this year: July 1st.

A new document from Putin’s official office requires the lower house of the country’s Federal Assembly to implement new regulations designed to develop the country’s digital economy and include a legal framework for how digital assets are regulated.

Cryptocurrency is extremely popular in Russia.

A new report from crypto exchange Binance explores why the country is gravitating toward digital assets and blockchain technology.

“Perhaps it’s not surprising that Russia is a hotbed for cryptocurrency activities, from trading to mining to ICOs. After all, Vitalik Buterin, the creator of Ethereum, was born in Russia. Nevertheless, the great presence of Russians in the crypto scene is an interesting trend to observe.

About 15% of the world’s traders are from Russia, compared with 30% from the US, 10% from each of China and Vietnam, and single-digit figures for the rest of the world, according to BDCenter. Meanwhile, venture capital firm Atomico noted that Moscow tops other areas in the world when it comes to the number of CEOs or founders of ICO projects.”

Meanwhile, Russia’s former Minister of Energy Igor Yusufov is reportedly working to create an oil-backed cryptocurrency. Yusufov says the new crypto could circumvent sanctions imposed by the US and create a stable means of exchange.

“The introduction of a system of settlements in cryptocurrency on the energy market hypothetically allows us to avoid the costs associated with the use of currencies that are not backed up – the unpredictability of exchange rate fluctuations, the commission for currency exchange, trade restrictions. Such a project can make a significant contribution to the development of the Russian and international digital ecosystem and set a new bar for commercial infrastructure, the use of blockchain and smart contracts for non-financial services.”