According to a press release issued on Tuesday, Russia’s government and central bank have agreed on how to regulate cryptocurrencies.
The Russian government and central bank are currently working on a draught law that will describe cryptocurrency as an “analogue of currencies” rather than digital financial assets, and it is expectable to go live on February 18. Only complete identification through the banking system or authorised intermediaries would allow cryptocurrency to function in the legal profession.
Bitcoin (BTC) transactions and cryptocurrency holding are not illegal in the Russian Federation, according to Kommersant. But they must go through a “digital currency exchange organiser”. Which is (a bank) or a peer-to-peer exchange licenced in the country.
According to the report, bitcoin transactions for more than 600,000 rubles ($8,000) must an official registration or they will be visible illegal. Fines will be imposed on those who illegally take cryptocurrency as payment.
Russia is becoming warming to the concept of cryptos
This news follows months of discussion about how the Russian government will deal with digital currency. It is unknown what this decision means for Russian enterprises and citizens. However, it appears that the country is becoming warming to the concept of cryptocurrencies.
In a report released in January, the Bank of Russia urged for a statewide crypto prohibition. Citing the industry’s speculative nature. As part of the recommendation to restrict digital assets, the bank also stressed that financial firms should not support crypto transactions.
The plan, however, faced criticism from the Russian Ministry of Finance. Ivan Chebeskov, a ministry official, stated a few days following the central bank’s proposal for a ban that the government should regulate crypto rather than outright prohibit it. He cautioned that a blanket ban would put Russia behind the times in terms of technology.
According to reports, President Putin is in favour of regulating the country’s crypto mining industry.