Russia Orders Development of Crypto Regulation
President Putin orders Russian ministries to create a regulatory framework for cryptocurrencies.
On October 10, 2017, Russian President Vladimir Putin formally instructed the country’s government and central bank to develop a comprehensive regulatory framework for cryptocurrencies and ICOs. The directive followed his earlier warnings about crypto’s risks, but also indicated recognition that blockchain technology could not simply be ignored.
Putin tasked the Ministry of Finance and the Bank of Russia with drafting legislation that would both control abuses and foster technological innovation. The orders included creating rules for token issuance, clarifying taxation policies, and implementing anti-money laundering standards for exchanges. This marked a turning point in Russia’s crypto policy: while officials had previously floated the idea of banning Bitcoin altogether, the Kremlin now leaned toward regulation over prohibition.
The move highlighted a pragmatic strategy to capture blockchain’s benefits while minimizing risks to the ruble and financial system stability.For the global market, Russia’s decision added to the growing sense that nation-states were preparing formalized approaches to digital assets, further legitimizing the sector despite increased oversight.