Russian Government and Central Bank Agree to Treat Bitcoin as a Currency

The Russian government and central bank have reached an agreement on how to regulate cryptocurrencies, according to a statement on Tuesday.

The Russian government and central bank are currently working on a draft law defining cryptocurrencies as “analogues of money” rather than digital financial assets, which will be released on February 18. Cryptocurrencies can only play a role in the legal industry if they are fully identified through the banking system or a licensed intermediary.

Kommersant notes that trading bitcoin and holding cryptocurrencies is not prohibited in the Russian Federation; however, they must be done through “organizers of digital currency transactions” (banks) or peer-to-peer exchanges licensed in the country.

The report also highlights that cryptocurrency transactions of more than 600,000 rubles (approximately $8,000) will have to be declared, otherwise they will be considered a crime. . People who illegally accept cryptocurrency payments face fines.

The news follows months of speculation about what the Russian government will do with digital currencies. While it’s unclear what the decision means for Russian businesses and citizens, Russia appears to be slowly embracing the idea of cryptocurrencies.

In January, Russia’s central bank called for a nationwide ban on cryptocurrencies in a report, warning about the speculative nature of the industry. The bank also said that financial firms should not facilitate crypto transactions as part of a proposal to ban digital assets.

However, the proposal was opposed by the Russian Finance Ministry. Days after the central bank called for a ban on cryptocurrencies, Treasury official Ivan Chebeskov said the government should regulate cryptocurrencies rather than ban it entirely. He warned that a blanket ban could cause Russia to fall behind technologically.

There have also been reports that President Putin supports efforts to regulate the country’s cryptocurrency mining industry.

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