The President of the Russian Federation, Vladimir Putin, has stated that the country needs to seize the moment and create a legal framework around digital assets.
According to a local publication, Putin noted that the country needed to develop conditions supporting the growth of the digital asset industry.
Putin’s recent sentiments mirror those of US Republican Presidential candidate Donald Trump. Earlier this week, Trump called upon the US government to embrace cryptocurrencies, saying that an anti-crypto stance will allow other countries to take over.
Putin Calls For a Legal Framework Around Crypto
While speaking at a meeting discussing the country’s economic issues, Putin noted a need to develop a legal and regulatory framework around digital assets promptly.
Some things that Putin is calling for to regulate the cryptocurrency industry include developing the necessary infrastructure. Furthermore, there was also a need to come up with the appropriate conditions to support the growth of this industry.
Putin stated,
It is important for Russia to ‘seize the moment,’ as they say, to create the legal framework and regulation in a timely manner, to develop infrastructure, to create conditions for the circulation of digital assets, both within the country and in relations with foreign partners.
At the meeting, Putin also spoke of the success of Russia’s Central Bank Digital Currency (CBDC). He noted that the digital ruble has completed over 30,000 transactions since its launch.
Putin also noted that the digital ruble had handled over 7,000 payments for goods and services since July 1.
Russia was among the first countries to experiment with CBDCs. CBDCs are digital assets that governments and central banks issue. Like other cryptocurrencies, CBDCs also tap the efficiency of blockchain technology.
Concerns Over Crypto Mining
Besides the recent calls for crypto regulations, the Russian president has also expressed criticism of the country’s Bitcoin mining industry.
Putin expressed concerns that if crypto mining activities were to rise in Russia, it could trigger power outages. He noted that the country needed to protect its power grids from mining operations that often demand much energy.
Putin warned that if crypto miners are given free access to the power grid, it could affect the power supply going to residential areas, social facilities, and enterprises.
Russia has become a hub for crypto mining activities since China banned these activities in 2021. The cost-effectiveness has attracted miners looking to increase their profit margins.
Putin now wants the crypto mining industry in Russia regulated. Some of his proposals include identifying the taxes that can be imposed on Bitcoin mining activities. These proposals will help control the consumption of power by miners and ensure that the power grid is not overloaded.
It is not the first time that Putin has shown skepticism about the cryptocurrency industry. In 2017, he criticized Bitcoin, saying it was a tool to launder criminal proceeds.
