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Russia will finally treat Bitcoin as a currency

The Russian government and the central bank of Russia have reached an agreement to properly treat crypto assets such as Bitcoin for coins.

Russia will finally treat Bitcoin as a currency

Russia will finally treat Bitcoin as a currency

Instead of trying to ban cryptocurrencies from their country, as China did, the Russian state machine has stricter proposals to capture cryptocurrencies.

By February 18, they will prepare a draft law on the circulation of digital currencies in the Russian Federation, in which cryptocurrencies are recognized with a meaning analogous to that of coins and not digital financial assets (DFA).

The aforementioned development was brought to light by Kommersant, a nationally distributed daily newspaper published in Russia devoted to politics and business.

According to the aforementioned report, the government and the Bank of Russia have until February 18 to prepare a bill on the circulation of digital currencies in the country.

According to the local newspaper, at least part of the new regulation will come into force in the second half of 2022 or from 2023.

The circulation of cryptocurrencies in the legal sector would only be possible with full identification, through the banking system or through licensed intermediaries, and transactions equivalent to more than 600,000 rubles (~$8,000) will have to be declared.

Operations that take place outside Russian jurisdiction will possibly be treated as a criminal offense and an aggravating circumstance in the Penal Code. Also, it could be that Russians get a fine for illegally accepting cryptocurrencies as a means of payment.

Russia has not had a clear stance on cryptocurrencies lately. Just in September, the Central Bank ordered local banks to block cryptocurrency transactions.

In mid-January of this year, Anatoly Aksakov of the Russian parliament expressed his concern about cryptocurrencies and insisted that the cryptocurrency-owning population declare their digital assets.

Shortly after that, the Central Bank called for a total ban on cryptocurrencies, outlining the threats it posed to financial stability, citizens’ well-being and the sovereignty of monetary policy. In parallel, a mining ban was also proposed.

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