The CEO of the well-known Binance cryptocurrency exchange platform, Changpeng Zhao, has said that Russian President Vladimir Putin is the most influential person in the cryptocurrency and blockchains industry. This was stated before the audience of more than 500 people who participated in a meetup conducted by the company, focused on the recent opening to innovation in Moscow.
CZ’s comment was reviewed in an article by the Russian media RBC News, which states that the Binance leader believes that the bill on the regulation of digital money, which is in the approval stage, can be adopted by the government of Russia in the near future.
Zhao also mentioned Vitalik Buterin, suggesting that the developer will have a significant impact in the event of a successful launch of Ethereum 2.0, as reflected in the aforementioned media outlet.
The Binance CEO also pointed out at the Moscow event that, in about fifteen days, the exchange house would have support for Russian rubles. Zhao’s claim came a week after the euro and pound sterling pairs were silently added to the Binance API (or plating interface).
All this happens without any progress on the official regulation in Russia, as the government seems to have delayed again the adoption of the country’s cryptocurrency law, as reported by local media.
However, why does Changpeng Zhao believe that Putin is the most influential character in the world of cryptocurrency and blockchains? While it is true that the Binance CEO did not delve into the details that would give an explanation to his reasoning, we have decided to review some data on the plans that the Russian government has in terms of cryptocurrencies, with the idea of answering the question previously raised.
Russia and its position on cryptocurrencies
Moscow has recently taken important steps towards the regulation of cryptocurrency space. The country, very dependent on energy exports and affected by US sanctions, needs alternative sources of income. Therefore, you can afford to turn a blind eye to bitcoin or other cryptocurrencies for too long.
In that same context, bills have emerged in Russia on the future of cryptocurrencies and the regulation of related activities, which are currently in different stages of approval. On October 1, the Law on Digital Rights, a new legal term, whose scope can be interpreted to include cryptocurrencies came into force.
Other rules of law could regulate the use of smart contracts, incorporating conditions for the automated execution of certain agreements. The Law on Digital Rights modifies the Civil Code of Russia, to allow an information system to now execute contracts on its own, according to Russian media.
Another bill that is related to cryptocurrencies has already passed the long legal process to become part of Russia’s current legislation. This is the Law on the attraction of investments through investment platforms, commonly known as the “Crowdfunding Law”. This law was signed by President Vladimir Putin in August, after the Russian State Duma approved it, and will enter into force on January 1, 2020.
For these reasons, Russia can be considered as a supporter of cryptocurrencies. Although its official adoption has not materialized, it is clear that it prepares a new legal system that will allow the Russian government to better regulate the use of cryptoactives.
Cryptocurrencies, despite their popularity in Russia, have faced some conflicts. The country’s Central Bank, which previously was not open to cryptocurrencies, has recently changed position. Russian politicians, including Vladimir Putin, believe that cryptocurrencies such as bitcoin should not be banned, but should be adopted within a set of regulations.