The price of Bitcoin continued to fall Wednesday, as Vladimir Putin said legislation regulating the cryptocurrency market could be needed in the future in Russia.
The Russian President discussed the risks of cryptocurrencies, saying they are efficient but also “not secure”, adding that more regulation “will be definitely required”.
Speaking to Russian news agency TAAS, he said, “this is the prerogative of the central bank at present and the central bank has sufficient authority so far.
“However, in broad terms, legislative regulation will be definitely required in future.
“It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything,” Putin reportedly said.
“It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently.”
Bitcoin – the world’s most well-known cryptocurrency – plunged to $12,000 down almost 11.85 percent on Tuesday after South Korea said plans to ban it were still a possibility.
It plunged 2.8 percent overnight from $13,896 after Finance Minister Kim Dong-yem told local radio station TBS that a crackdown on trading digital currencies was “a live option”.
It continued to drop throughout the day and, despite recovering marginally to $11,222 by Wednesday morning, remained on a downward trajectory.