Russia’s Financial Watchdog Believes Cryptocurrency Businesses Are Subject to Licensing

News and Analysis

According to the Federal Financial Monitoring Service, Russian cryptocurrency market employs about 100 thousand people today. Therefore, the question of licensing those companies requires a solution.

This statement was made today, 21 September by Deputy Director of Federal Financial Monitoring Service, Paul Livadny.

“It is estimated that this market in Russia employs about 100 thousand people. And in most cases, these are the people who are just curious about cryptocurrency with no relation to serious business,” Livadniy told Rossiyskaya Gazeta.

According to expert evaluations Livadny quoted, actual Bitcoin capitalization, calculated by the value of invested funds, exceeds 60 billion rubles.

Additionally, the representative for the Federal Financial Monitoring Service spoke about the need to regulate cryptocurrency.

“This is already a reality, the Internet of Things, the blockchain, smart contracts, and cryptocurrency. The main thing is to seamlessly introduce those innovations in the legal realm. Providers of connection between virtual and real turnover of money have to be licensed,” Livadny added.

He noted that it covers cryptocurrency exchanges in particular.

“These are the operators being in touch with buyers or sellers of goods and services. Such organization has to be licensed, its legal status requires determining, and some rules have to apply. A straightforward ban of cryptocurrency as a money surrogate won’t let us solve the problem,” Livadny said.

He also noted that the market is developing very actively in Ukraine, which may be a direct threat to the Russian Federation as there are no boundaries when it comes to exchanging online.

“Currently in Russia, cryptocurrency circulation is not directly regulated in legal terms. I can’t say when a bill or a law will come about, but I’d like it to happen as fast as possible, as such relations need regulation,” Livadny noted.

The FFMS has voiced its opinions in regard to cryptocyrrencies before. Pavel Livadny addressed the same issue at the State Duma conference on cryptocurrencies  earlier this year.


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