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Russian government and central bank agree to treat Bitcoin as currency.

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Cryptocurrency transactions worth more than 600,000 rubles ($8,000) must be reported; otherwise, they may be considered illegal. The government and central bank in Russia have reached an agreement on how to regulate cryptocurrencies, according to a Tuesday announcement.

Russia’s government and central bank are currently working on a draft law that will define cryptocurrency as a “analogue of currencies” rather than digital financial assets, which will go live on February 18. Only complete identification through the banking system or licensed intermediaries would allow cryptocurrencies to function in the legal industry.

Bitcoin (BTC) transactions and cryptocurrency possession are not prohibited in the Russian Federation, according to Kommersant, but they must be done through a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange licensed in the country.

Russia’s Cryptocurrency Regulation

Source: Pixabay.com

According to the report, cryptocurrency transactions worth more than 600,000 rubles ($8,000) must be declared; otherwise, they may be considered a criminal act. Fines will be imposed on those who illegally accept cryptocurrencies as payment.

See also: Five cryptocurrencies set to explode in 2022.

This news comes after months of speculation about how Russia will deal with digital currencies. While it is yet unknown what this ruling will entail for businesses and residents in Russia, it seems that the government is slowly warming up to the idea of cryptocurrency.

In a report released in January, the Bank of Russia called for a nationwide crypto ban, citing the industry’s speculative nature. As part of the proposal to ban digital assets, the bank also stated that financial firms should not facilitate crypto transactions.

The proposal, however, was met with opposition from the Russian Ministry of Finance. A few days after the central bank’s request for a ban, Ivan Chebeskov, a ministry official, stated that the government should regulate crypto rather than prohibiting it outright. He warned that a total ban would put Russia behind the times in terms of technology.

According to reports, President Vladimir Putin is in favor of regulating the country’s crypto mining industry.

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