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Russia is expected to recognize cryptocurrency as a form of payment

According to local news sources, Russian authorities are planning to recognize digital assets as a type of cash. The government and the Bank of Russia have struck an agreement on how to regulate cryptocurrencies.

That’s, according to Russian newspaper Kommersant, which subsequently tweeted…

They are currently working on a draft law that will classify crypto as a “analogue of currencies” rather than digital financial assets, with a deadline of February 18th.

According to the paper, crypto can only be used “in the legal sector” with complete identity. That’s, through the banking system, or through permitted intermediaries.

The announcement comes only weeks after the Bank of Russia urged for a blanket ban on cryptocurrency in a study released in January. Thereby, claiming that the industry’s speculative character posed a substantial threat to Russians’ financial stability. Financial institutions should not be allowed to facilitate crypto transactions, according to the central bank’s suggestion.

According to multiple sources, President Putin supports proposals to regulate the country’s crypto mining business.

According to today’s Kommersant news, crypto transactions worth more than 600,000 rubles ($8,000) would have to be registered or will be considered a criminal offense. Fines will be imposed on anyone who take cryptocurrency as a form of payment illegally.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.