Sergey Glazyev, an advisor to President Vladimir Putin, in Beijing on September 20, 2018, with founder of the cryptocurrency exchange Huobi, Leon Li. The meeting concerned Russia’s potential for blockchain technology, and cryptocurrencies. This potential partnership with Huobi will be a move forward with the new industry into a standoffish country towards cryptos.
The advisor has been a strong proponent for blockchain and its possible benefit to Russia in regards to preventing illicit financial activities. Glazyev commented on the meeting and the new technology:
“The cryptocurrency industry is still booming and expanding, and almost every country on the planet is making an attempt to grow the crypto-space. If Huobi Group can set a good example for the market, it will be of great help to Russia’s national legislation on blockchain cryptocurrencies. The combination of Huobi’s experience to implement in Russia will have a positive effect on Russia’s economic growth. Therefore, I believe this is a great opportunity to explore this area.”
Putin’s special representative for digital and technological development, Dmitry Peskov, is hesitant on the matter, and feels that the technology is not a currently a good fit for the country. This comes in light of the 22 Bitcoin ATMs seized by the government on August 31, 2018, as well as the stronger KYC regulations put in place back in August.
As in opposition to Glazyev claims that blockchain technology and incorporating cryptocurrency combat financial fraud and corruption, Russia’s Federal Financial Monitoring Service (Rosfinmonitoring) is using their Unified Information System to track and monitor cryptocurrency transactions with an emphasis on Bitcoin, claiming that the technologies will lead to fraud.