Summary:

• Russian President Vladimir Putin tells central bank not to create unnecessary barriers to digital currencies
• Litecoin (LTCUSD on xStation5) hovers above a key trend line
• Russia’s finance minister proposes registering cryptocurrency miners to increase tax collection

Russian is one of the most interesting countries to watch in terms of virtual currencies. On the one side, there were expectations that the former soviet country could regulate the cryptocurrency industry, on the other one there are still many unknowns when and if some legal regulations are implemented. The topic has even drawn Putin’s attention of late who has expressed his opinions at a meeting held on Tuesday. The meeting was accompanied by some prominent politicians such as the central bank governor, her deputy and the finance minister. While Putin acknowledged the risks associated with cryptocurrencies, he stressed the importance to not “build up unnecessary barriers” for new technologies.

Putin’s meeting on using digital technology in finance on Tuesday. Source: bitcoin.com

Before the meeting began, the Russian President gave a quick speech on digital currencies saying “cryptocurrencies, are becoming or have already become very popular, in certain countries they are becoming or have already become legal tender, as well as an investment asset”. He also said “I would like to draw your attention to the need to use the advantages that are offered by new technological solutions in the banking sphere” and referred to risks as “this is an opportunity for laundering illegal gains, tax evasion and even financing of terrorism, not to mention the proliferation of scams to which ordinary people can fall victim. Cryptocurrencies are issued by an unrestricted circle of anonymous entities. Therefore, buyers of cryptocurrencies may be involved in illegal activity”.

Litecoin (LTCUSD) is still trading above a key ascending trend line which might offer a decent buying opportunity if the price manages to defend it. If so, a move towards $63.2 could be on the cards, this is especially true when we take into account that Litecoin has been the most sub-par cryptocurrency compared to its major peers over the course of recent days. Source: xStation5

It’s not the end of the Russian story because we have to mention another meeting (regulators) which took place on Monday. During the event the Russian finance minister proposed to register cryptocurrency miners as well as to license exchanges dealing with them. A State Duma Deputy also made a proposal to officially legalize mining in order to tax miners and to only allow banks to exchange cryptocurrencies to rubles. It would end up with a higher extent of scrutiny of the government while tax collection would be likely to increase.