Chief Internet advisor, Herman Klimenko, announced the creation of the Russian Association of Blockchain and Cryptocurrency (RABIK), to take over development and regulation of cryptocurrencies in Russia. Also focused on encouraging increased activity of regulators, the association aims to make the market a credible source of finance and trade.
Compared to the Chinese stance on cryptocurrency and ICO’s which it is supposedly cracking down on, Russia has taken a accepting stance acknowledging the power and influence of currencies like bitcoin. Eventhough certain individuals such as Alexei Moiseev are campaign for cryptocoins to be only traded on regulated exchanges, the association aims to extend legalization efforts to allow increased adoption of the technology.
“Participants of the association, among other things, will be given various preferences, including from manufacturers of equipment for creating cryptocurrencies, the opportunity to present their technologies to potential consumers and participate in major state events,”
Russia has remained a hotbed for Blockchain development as the state has been hands on in regulating the sector. While Putin had informally endorsed Ethereum, Bitcoin remained a controversial case as its size meant a threat to the traditional banking system and the fiat currency, the ruble.
To conclude, the new department will allow cryptocoins to be a valid point of discussion in governmental affairs. As of now there have been many inklings to potential endorsement of bitcoin and Blockchain technology in Russia even from the likes of Putin himself, but the association created will allow increased prominence of the technology. Allowing legal and public discussion of cryptocoin technology, the association is also focused on promoting development of applications for practical use and aims to encourage public demonstration of such technology.