Russian Minister Compares Cryptocurrencies to Ponzi Schemes

According to Russian Economic Development Minister Maksim Oreshkin, the global development of cryptocurrencies resembles a pyramid scheme.

“Quite often, prices of cryptocurrencies don’t reflect the actual cost of such an asset. It was common for pyramid schemes in Russia in the past, and now we see that a similar situation is developing globally in regard to some cryptocurrencies,” Mr. Oreshkin said.

The minister has also noted that cryptocurrencies should be viewed as assets, not money, RBK reports.

“One shouldn’t see them as currencies, one should see them as an asset, and treat this assets value with great care,” Mr. Oreshkin added.

Next month Russian State Duma (parliament) plans to review a bill that legalizes cryptocurrencies. According to Elina Sidorenko, the head of the parliament’s working group of cryptocurrencies, the bill, however, does not include provisions for tax regulation of virtual money.