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September 21, 2018

Vladimir Putin accused virtual currencies for money laundering instrument and financing of terrorism

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Vladimir PutinТhe Russian president Vladimir Putin attacked the Bitcoin and digital currencies during a speech at forum in Sochi. He defined the virtual currencies as money laundering instrument and financing of terrorism and frauds.

“Virtual currencies are becoming more and more popular, as in some countries have full legal means of payment as well as an investment asset, but still hide serious risks. We had talked with the central bank governor several times for that issue. First of all this is an opportunity for money laundering, tax evasion and even the financing of terrorism and frauds”, said the Russian president, Vladimir Putin.

Putin stressed that crypto-currencies are issued by an unlimited circle of anonymous subjects. In this way, the digital currencies buyers can be engaged in illegal activities. In addition, there is no collateral for this type of currency.

“We know that many countries are seeking ways to regulate the circulation of these crypto-currencies, only when the necessary legislative conditions and regulatory framework is set”, said Vladimir Putin. “We need, on the basis of international experience, to build a regulatory environment that will allow systematization of relations in this area, of course, to protect the interests of citizens, businesses, the state, to provide legal guarantees for working with innovative financial instrument”, added the Russian president.

He stresses, however, that Russia is required to take advantage of the benefits of new technology solutions in the banking sphere.

The discussion took place during a meeting for the use of digital technologies in the financial sector and the introduction of innovative financial instruments. It was attended by presidential councilor Andrei Belousov, finance minister Anton Siluanov, central bank chairman Elvira Nabiullina and deputy head of central bank Olga Skorobogatova, as well as the chief executive of private company Qiwi Sergey Solonin.

The Russian Central Bank and its governor, Elvira Nabiulina, oppose crypto-currency as a cash tool. The central bank would like to limit the work of sites that offer digital currencies.

“We believe that for our citizens and businesses the use of such a crypto-currency as an investment object brings unnecessarily increased risks,” said Sergey Shvezov, first deputy chairman of the central bank, “We can not provide direct and easy access to petty- investors to such dubious instruments, “he explains.

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