Cryptocurrency transactions worth more than 600,000 rubles ($8,000) must be reported; otherwise, they may be illegal. According to a Tuesday announcement, Russia’s government and central bank have reached an agreement on how to regulate cryptocurrencies.
Russia’s government and central bank are working on a draft law that would classify cryptocurrency as an “analog of currencies” rather than digital financial assets, which will go live on February 18. Only comprehensive identification through the banking system or regulated intermediaries would allow cryptocurrencies to function in the legal business.
Bitcoin Relation Transaction Policies
The Russian Federation doesn’t outlaw Bitcoin (BTC) transactions and cryptocurrency holding, according to Kommersant. However, they must go through a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange regulated in the nation. Anyone who unlawfully takes bitcoins as payment will receive a fine.
This revelation comes after months of conjecture about how Russia will deal with digital currency. It is unknown what this decision will entail for Russian businesses and individuals. However, it appears that the country is gradually warming to the concept of cryptocurrencies. In a study released in January, the Bank of Russia urged for a statewide crypto prohibition, citing the industry’s speculative character. The bank also stated that financial institutions should not facilitate crypto transactions as part of its recommendation to limit digital assets.
The Russian Ministry of Finance, on the other hand, was critical of the idea. A ministry official, Ivan Chebeskov, indicated a few days after the central bank proposed a ban that the government should regulate crypto rather than banning it altogether. He warned that imposing a blanket ban would technologically put Russia behind the times. President Vladimir Putin, according to sources, is in favor of regulating the country’s crypto mining business.
