The Different Stages Russian Encountered with Cryptocurrency:
Russia has opened its first cryptocurrency exchange office called Sbercoin in Moscow in April 2018. But this exchange office is limited to Bitcoin alone, and the users are supposed to make a transaction in the office itself. Though cryptocurrency may be decentralized, Sbercoin identifies the users by their passport or even driving license.
At first, the government does not give consent to the citizen in using cryptocurrency as fiat money. However, from May 2018, cryptocurrency is now considered as a valuable property by the government. The incident of bankruptcy that happens to Ilya Tsarkov, earlier this year, went through extensive legal issues. At first, the court refused Tsarkov his 0.2 Bitcoin, but after approval of the bill, the bank used his digital currency in his bankruptcy estate.
January 2018 saw a purchase of power plant for a computer by an Alexie Kolesnik. Kolesnik bought this power plant to work on mining cryptocurrency. This purchase is the first time Russia witnessed the utilization of a power plant for the cryptocurrency.
June 2017 gave news on how the farmers move away from the use of Ruble, the Russian currency to cryptocurrency. Mikhail Shlyapnikov was the one who started this. His cryptocurrency is named Kolions. On April 2018, he had earned $5,000,000 from Initial Coin Offering (ICO). Further, the Russian plan to use cryptocurrency so as to be independent of any Western financial sanctions. Though Russia may not be open up to digital currency in a way Japan does, they have seen incidents related to the new currency.
Though Russian government is open up to cryptocurrency as much as many other countries do, the interview with President Vladimir Putin on June 2018 state that the country will not have a Cryptocurrency of its own in the near future. He further mentions why the government cannot be wholly part of this digital currency as it is decentralized. There are many rules and regulation underline when it comes to being centralized. Therefore, cryptocurrency can never come under the center.
With the many incidents happened with cryptocurrency in Russia there is a need to have a safeguard. For this Rosfinmonitoring act as a safeguard.
What is Rosfinmonitoring?
The Federal Finance Monitoring Service of the Russian Federation commonly known as the Rosfinmonitoring was created by President Vladimir Putin on November 1, 2001. The main aim for this Federal Service is to collect and analyze all the financial transaction in order to “Combat domestic and international money laundering, terrorist financing and other financial crimes”.
Rosfinmonitoring intends to create a new tool to detect all the cryptocurrency transaction that happens in Russia. The software that will work on detecting any external attackers has not been made. It is believed that the Russian Tech company, Moscow Institute for Security and Informational Analysis will be taking care of this software.
Russia may not yet get its own cryptocurrency but they are certainly one of the many countries that took cryptocurrency in the next level.