Cryptocurrency Investors Spend Money on Candy Wrappers, Russian Official Says

Cryptocurrency investors are wasting their money on candy wrappers, according to the head of the State Duma Committee on Information Technologies and Mass Communication Leonid Levin.

Leonid Levin, the Chairman of the Duma Committee responsible for information technologies and mass communications, criticized cryptocurrencies but confessed that the citizens of the Russian Federation could buy any currencies they want, as there is no particular legal restrictions to that effect, a local outlet reports.

“What is worth buying is another question. In essence, you buy candy wrappers. You buy trust in some kind of software, that can save and multiply your capital,” he said.

Levin is concerned that cryptocurrencies are easy to get and easy to lose and there is no one to be held responsible for that, no one to guarantee payments and settlements with digital assets.

Currently, there are three draft bills on cryptocurrencies, mining, and ICO. The debates on the proposed legislation will start after the Duma members get back to work after their summer break.

According to Anatoly Aksakov, the Chairman of the Russian State Duma Committee on Financial Markets, cryptocurrencies have proved to be a complicated issue, which needs an in-depth analysis and careful consideration to avoid pitfalls and deficiencies in the legislation. At first, it is necessary to define the scope of the regulation, and then proceed to creating guidelines that will determine the rules and protect ICO and cryptocurrency investors, he believes.

Russian officials may be wary of cryptocurrencies, considering them too risky and vulnerable to scams; however, they seek to promote blockchain technology development. Namely, the Russian authorities support the idea of applying blockchain technology to national banking and finance systems and plan to move the Financial Communications Transfer System (SPFS) to blockchain in 2019.



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