In its intention to regulate cryptocurrencies, Russia is thinking about creating a Crypto-Detective agency. The finality of this institution is to collect information about future Russian Initial Coin Offerings (ICOs). The presentation of the agency took place at a meeting of the State Duma Financial Market Committee.
What is the Crypto-Detective Agency?
The Crypto-Detective agency would help the Russian government to control ICOs and companies working with cryptocurrencies. Its main goal is to avoid money laundering, tax evasion and funding for terrorism.
“Our agency will be able to extract information about their beneficiaries and their real state of affairs. Our task is to protect investors. When a company that has attracted funds from large number of people fails, its investors will seek protection from the state”, said Alexei Fyodorov president of The Internet Development Institute.
The decision of creating a crypto-regulatory agency is to protect Russian citizens. Scams, fraudulent ICOs, criminal fundraising and other illegal activities can be carried out with decentralized cryptocurrencies. In this way, there is a reduction of dangers for the investments in ICOs. In addition to it, investors are protected by the government in case they are scammed or the ICO fails.
“To protect investors in cryptocurrencies in Russia, it is planned to create a specialized crypto-detective agency. It will collect information on Russian companies intending to launch an ICO. Information will be stored in a special register”, commented Fyodorov as reported by news.bitcoin.com.
Russia wants to regulate cryptocurrencies
Since a long time, Russia is trying to regulate the cryptocurrency market. Indeed, some days ago, Russia decided to issue its own cryptocurrency, the CryptoRuble. This is a way of competing with decentralized virtual currencies that are growing in the market.
Russian president, Vladimir Putin, was concerned about cryptocurrencies. “The use of cryptocurrencies bears serious risks”, he commented in a meeting with top finance officials in Sochi. This situation pushed Putin to impulse the creation of a “regulatory environment” to give an institutionalized framework where to operate.
National Cryptocurrencies to fight against decentralized ones
Russian decision to issue its own cryptocurrency was pushed because other countries in the Eurasian Economic Commission wanted to do it. Kazakhstan announced that it is working in the development of a national cryptocurrency not to lag behind other countries. For example, Japan and Switzerland are open countries to cryptocurrency investors.
In Europe, several countries tried to issue their cryptocurrencies. Some of them were pressed by the European Central Bank (ECB) to avoid their development.
A national cryptocurrency helps governments to control what the citizen do. It allows a centralized authority to know where the money goes, who has it and what they do with it.