According to the Russian daily Kommersant, the Russian government and the Bank of Russia have struck an agreement on how to regulate cryptocurrencies. Now, they are drafting a law that will classify crypto as an “analog of currency” rather than a digital financial asset, with a deadline of February 18th. Through the banking system or permitted intermediaries, crypto can be used “in the legal sector” with complete identity.
The announcement comes only weeks after the Bank of Russia urged a ban on cryptocurrencies. The banks claimed that the industry’s speculative character presented a substantial danger to Russia’s financial stability. Financial institutions should not be allowed to facilitate crypto transactions as per the suggestion of the central bank.
Russian President Putin supports proposals to regulate the country’s crypto mining business. According to Kommersant news, crypto transactions worth more than 600,000 rubles ($8,000) would have to be registered or be considered a criminal offence. Fines will be imposed on anyone who uses cryptocurrency as a form of payment unlawfully.
