Russia Moves to Recognize Crypto Assets as a Form of Currency

As a report has it, Authorities in Russia are set to recognize crypto assets as a form of currency.

A local newspaper, Kommersant, broke the news a few hours ago, and later tweeted that the government and the Bank of Russia have reached a consensus on how to regulate crypto space in the country.

Read Also: Russia’s Former President Dmitry Medvedev: Banning Crypto May Lead to the Opposite Result

Kommersant tweeted, “The government and the Bank of Russia have agreed on a future regime for the circulation of cryptocurrencies in Russia: before February 18, they will prepare a draft law on the circulation of digital currencies in the Russian Federation, in which cryptocurrencies are recognized as an analogue of currencies, and not digital financial assets…”

As stated in the tweet above, they are currently preparing a draft law, which will be made public by 18th February, targeted at defining crypto as an analogue of currencies rather than as digital financial assets.

The report added that it will only be possible to use cryptocurrency in the legal sector with full identification, via the banking system or authorized intermediaries.

The latest development comes a few weeks after the Central Bank of Russia published a proposal targeted at an outright ban of cryptocurrency and its related activities in the country.

The bank argued that the speculative nature of crypto industry posed a huge threat to the financial stability of citizens. In the proposal, the bank also said that financial institutions should be stopped from facilitating crypto transactions.

Read Also: Federal Reserve Chairman Jerome Powell Says United States Has No Plans to Ban Bitcoin and Cryptos

Back then, the Central Bank’s proposal was met with lots of condemnations from top executives and the country’s Ministry of Finance, which prompted President Vladimir Putin to weigh in.

The new report also revealed that crypto transactions of over 600,000 rubles worth relatively $8,000 will have to be declared or will be termed as a criminal offence. Those who illegally accept crypto as a payment option will also be fined.

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