According to a report published on Tuesday, the Russian government and the central bank have agreed on how to regulate cryptocurrencies.
The Russian government and central bank are now working on a bill that would define cryptocurrencies as “coin analogues” rather than digital financial assets, which will be launched on February 18. Banking system or licensed intermediaries.
Kommersant notes that operations with Bitcoin (BTC) and owning cryptocurrencies are not prohibited in the Russian Federation; However, this must be done through a “digital currency exchange facilitator” (a bank) or through a state-licensed peer-to-peer exchange.
The report also highlights that crypto transactions worth more than 600,000 rubles (about $8,000) must be declared; Otherwise, it can be considered a criminal act. Those who accept cryptocurrency illegally will be fined.
This news comes after months of speculation about how the Russian government will deal with cryptocurrencies. While it remains unclear what this decision will mean for companies and citizens in Russia, the country appears to be slowly preparing for the idea of cryptocurrencies.
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In January, the Bank of Russia called for a nationwide ban on cryptocurrencies in a report warning of the speculative nature of the industry. The bank also said that financial firms should not facilitate cryptocurrency transactions as part of a proposal to ban digital assets.
However, this proposal aroused opposition from the Russian Ministry of Finance. Days after the central bank called for a ban, Ivan Chepskov, a ministry official, said the government should regulate cryptocurrencies rather than ban them altogether. He warned that a complete ban could leave Russia behind technologically.
There have also been reports that President Vladimir Putin supports attempts to regulate cryptocurrency mining in the country.