The Russian Federation which is considered one of the strictest when it comes to financial management has been expecting a cryptocurrency regulation for quite some time now. Unfortunately, however, the council of ministers underperformed and was not able to deliver a tangible framework by the end of the first quarter of 2019.
Due to being late on the deadline, Vladimir Putin put forward a formal one, which should be met by the end of June. Now, however, the Prime Minister and ex-president of Russia, Dimitry Medvedev has announced that due to the decrease in crypto popularity, a regulatory framework should not be the on the country’s list of priorities.
Crypto popularity is decreased?
It is quite hard to understand the Prime Minister’s remarks as his comments were made not too long ago, on May 15th to be exact. As we all know this was a time when the crypto market was raging and nearly every cryptocurrency was climbing its way up through the prices. Therefore the PM’s remarks about there being less popularity for cryptocurrencies, while the popularity was growing is quite hard to comprehend.
While the cancelation of a Russian regulation will be nothing but beneficial for thousands of mining farms located in the country, it is quite odd to have it dismissed so quickly. Naturally, there will be at least some kind of process where the government will negotiate between one another to make a more educated decision.
The fact is that Medvedev’s words will most likely be ignored by the President as he had made a very clear demand that a regulation must be instated by the end of June. And Putin put forward quite a lot of realistic arguments such as the money laundering issues in Russia, alongside multiple terrorism financing cases, which were all done by cryptocurrencies.