Russia is preparing to acknowledge crypto as a form of currency

Russia is preparing to acknowledge crypto as a form of currency

According to local news sources, Russian authorities are prepared to recognize digital assets as a type of currency. The government and the Bank of Russia have struck an agreement on how to regulate cryptocurrencies, according to Russian newspaper Kommersant, which subsequently tweeted. They’re currently working on a draft law that will classify crypto as a “analogue of currencies” rather than a digital financial asset, which should be ready by February 18. The paper went on to say that only “in the legal sector” with complete identity, through the banking system, or through approved intermediaries will it be possible to utilize crypto. After pushing for a blanket ban on crypto in January, the Bank of Russia said that the industry’s speculative character put citizens’ financial security in jeopardy, and the Bank of Russia’s report was published mere weeks later. The central bank also stated that financial institutions should not be allowed to facilitate crypto transactions as part of that suggestion. According to several reports, President Putin supports proposals to regulate the country’s crypto mining business. According to today’s Kommersant story, crypto transactions of more over 600,000 rubles (about $8,000) would have to be registered or be prosecuted. Those that take bitcoin as a form of payment in an unauthorized manner will face hefty fines.

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