Cryptocurrency trades worth more than 600,000 rubles (USD 8,000) must be registered or will be considered illegal. Russia’s government and central bank have achieved a deal on how to regulate virtual currencies. The central bank and Russian government are now preparing a draft law that would describe cryptocurrency as an “analogue of currencies” instead of digital financial assets, which will be released on February 18. Only thorough identification from banks or authorised intermediaries would allow crypto to operate in legal business.
Bitcoin (BTC) transactions and cryptocurrency holding are not outlawed in the Russian Federation, according to Kommersant, but they must be carried out via a “digital currency exchange facilitator” or a regulated peer-to-peer exchange. In a study released in January, the Bank of Russia recommended a countrywide crypto prohibition, citing the industry’s speculative character. As part of the plan to outlaw digital assets, the bank also stressed that financial institutions should not support crypto transactions.
The plan, however, was met with criticism from Russia’s Ministry of Finance. Ivan Chebeskov, a ministry official, stated that the government should manage crypto rather than outright outlaw it. He cautioned that a complete ban would put Russia behind the times in terms of technology.
According to reports, President Putin is in favour of regulating the country’s cryptocurrency mining industry.