Crypto to be treated as a Currency by Russia: The Russian Government and Central Bank have reported to arrive at an Agreement.

Synopsis

“An agreement has been reported to reach between the Russian Government and the Central Bank of Russia to regulate crypto as currencies and not as assets. The move came after weeks of the Central Bank of Russia pushing towards a blanket ban on the cryptocurrencies on which President Putin had an opposite viewpoint. The draft bill for the regulation is under development and is expected to be completed by 18th Feb, 2022.”

A few weeks earlier the Central Bank of Russia came out with a proposal for a blanket ban on the use of cryptocurrency and cryptocurrency mining in Russia that was opposed by the Russian President himself and pointed in the direction of effective regulation. On Tuesday, it was announced that the Russian Government and the Central Bank of Russia have reached an agreement to regulate cryptocurrencies in Russia.

The Russian Government and the Central Bank are now working on a draft law that will define the cryptocurrencies “as analogue to currencies” and not as digital financial assets that is set to be released on Feb 18, 2022. The use of cryptocurrencies as reported will require trading only through Banks or licensed crypto exchanges in the country. Any involvement in transactions outside the purview of these intermediaries will be considered a criminal act.

The report also highlighted that the cryptocurrency transactions of more than 600,000 Rubles (Roughly $8,000) would have to be declared otherwise it could be considered as a criminal act. This bill, if passed, would be a revolutionary act in the crypto space and is being considered to be positive news for the crypto industry. This will encourage other countries to regulate the cryptocurrencies in a fair manner.