President of Russia Vladimir Putin stated that using cryptocurrencies is fraught with serious risks, “first of all, in the form of money laundering, tax evasion, and even financing of terrorism”.

Kremlin press service informed that the Russian President made the statement on cryptocurrency at the meeting on application of digital technologies in the financial sector and introduction of innovative financial tools.

22.09.2017 | 10:41 Bank of Russia Governor speak against legalizing cryptocurrency

According to Putin, the risks include fraud schemes that prey on ordinary citizens.

“Cryptocurrencies are issued by an unlimited amount of anonymous subjects. Moreover, cryptocurrency doesn’t have a backing. In case of system failures or “bubbles”, there won’t be a legally responsible subject. It’s a serious issue that we need to keep in mind while discussing this topic,” said Vladimir Putin.

According to him, many countries are searching for ways to regulate cryptocurrencies and just beginning to create necessary legislation and regulatory framework.

“We need to take the international experience as the basis and build a regulatory environment that would allow us to systematize relations in the field, protect the interests of citizens, businesses and the state, and provide legal guarantees for working with innovative financial tools,” concluded President Putin.

The partner of Fintech section is