RosFinMonitoring: Bitcoin and Blockchain Have to Be Legally Regulated

News and Analysis

Deputy director of Russia’s Federal Service for Financial Monitoring Pavel Livadny deems it necessary to introduce a regulatory framework for cryptocurrencies and blockchain technology as a federal law.

Speaking at a conference on cryptocurrencies held today in the country’s parliament, he said:

“The system is based on trust. No legal mechanisms for protection of data and user rights are elaborated. Payments tools here are brainchildren of artistic initiatives from different collectives. It all requires an order, there has to be a relevant level of regulation. Certainly, in a form of a federal law at first, and then there will be bylaws by the government and federal entities.”

He also noted that the technologies underlying cryptocurrencies will inevitably enter our routine, so they would require a dedicated approach.

“In fact, it’s not citizens, but software complexes and hardware devices that interact on behalf of their client. They make landmark decisions beyond any legal support, including those concerning property rights transfer. It might be not present day, but it is our immediate future. Those technologies are already invading our lives in the form of cryptocurrency. There are different approaches towards their regulation around the world. There’s also blockchain technology, meaning that there’s no centralized storage for important legal information,”Livadny said.

Last week, speaking at the conference organized by the Association of Russian Banks, Livadny suggested that the bill on cryptocurrency ban will have to be revised in the direction of regulation, rather than ban.

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