ST. PETERSBURG, July 2 (RAPSI) - Cryptocurrencies could be regulated by Russian laws in the future, First Deputy Head of the Central Bank Georgy Luntovsky said at the International Banking Congress.

Last January, the Central Bank of Russia warned the public and corporations against using virtual currencies, questioning the legitimacy of such transactions. The regulatory body and the General Prosecutor’s Office developed joined action to prevent the possible violation of property rights of individuals and companies while using cryptocurrencies.

The most successful and perhaps the most controversial virtual currency scheme is Bitcoin. Used in many countries, it can compete with official currencies, including the euro and US dollar. However, Bitcoin is not secured by any assets or tied to any world currency. Its exchange rate is determined by market supply and demand.

Bitcoin is a decentralized virtual currency, created by computer users worldwide through a complex programming procedure nicknamed “mining”. Bitcoin’s status varies from acceptance to restriction as some governments are concerned about risks involved with Bitcoin use.

“We are looking into the cryptocurrency issue along with the government. Currently, we are in the middle of discussion. We will soon make a decision on whether it should be governed by laws. But for now, we are analyzing the situation without any interference,” Luntovsky said.

He admitted that the “currencies” should not be rejected right now. “Perhaps they are a thing of the future, but the problem is anything new often becomes useful for criminals,” First Deputy Head of the Central Bank noted.

“We support a careful approach to this issue. We believe that at this point, we should watch how this system develops,” Luntovsky explained and added that the Central Bank monitors the issue in cooperation with the Bank for International Settlements.