Russia: Govt, top bank see cryptos as ‘analogue of currencies’; release draft bill soon

ambcrypto.com:

After months of speculation and opposing debates, Russia has surprised the cryptocurrency industry by agreeing to recognize Bitcoin as currency. This comes after the Russian government and central bank came to a consensus on the regulation of cryptocurrencies, Kommersant reported on Tuesday.

The government and central bank of Russia will now work on draft legislation together which is expected to be launched on 18 February and will recognize crypto as an “analogue of currencies” that are standard like the ruble rather than digital financial assets.

A draft document regarding the same noted that the legislation would be aimed toward integrating the circulation and usage of cryptocurrencies within the country’s current financial system. This would mean the complete identification of each cryptocurrency through the banking system or licensed intermediaries for them to receive legal status.

The report also noted that while possessing cryptocurrencies and using them for transactions is currently not banned in Russia, they must be carried out through a “digital currency exchange organizer” or a peer-to-peer exchange licensed in the country.

It further revealed that transactions worth over 600,000 Rubles, or around $8,016, would need to be declared or will be deemed a criminal act. Further, those engaging in illegal crypto transactions through alternative channels will also be liable to pay fines.

According to the document, the regulatory regime will be aimed at protecting Russian citizens from the risks posed by crypto assets, along with establishing a licensing mechanism for cryptocurrency providers to ensure transparency.

While it is yet to be known what these new regulations would mean for any of the parties involved, including