On Tuesday, the Russian government and the central bank announced they had reached an agreement on draft cryptocurrency regulations. They plan to recognize cryptocurrency as currency rather than as an asset. The ban on digital coins has also been lifted.
Remember that the Russian Central Bank suggested a ban on cryptocurrency last month. It was supposed to accommodate both their use and digging. The Ministry of Finance opposed the idea of a central bank, claiming that it would lead to Russia’s technological backwardness.
According to the Kommersant news outlet, authorities now seek to recognize cryptocurrencies as currencies, not digital financial assets. As per reports, a deadline of February 18 has been set for the new legislation.
Additionally, Russia’s legislation is proposed to combine the mechanism of digital currency circulation into the country’s financial system while maintaining control over the cash flows of credit institutions.
The introduction of cryptocurrency trading regulations and controls will mitigate the threat to the financial system’s stability. It will help limit the use of cryptocurrencies for criminal purposes, as a complete ban of operations related to their circulation is impossible.
Cryptocurrency use as a currency will be permitted only when adequate identity checks have been conducted via the national banking system or authorized intermediaries. Operations worth more than 600,000 rubles ($8,016) must be disclosed to the appropriate authorities. Transactions that fail to meet these criteria will be deemed illegal.
Furthermore, officials stated that the proposed legislation would safeguard citizens’ rights when it comes to licencing. Suppliers will need to have “financial airbags” in place to protect their liquidity and capital positions.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.