Russia to draft law recognising crypto as a form of currency

What

Russian authorities set to recognise cryptocurrencies as a form of currency according to local reports

Why 

The government and the Bank of Russia have reached an agreement on how to regulate cryptocurrencies

What next

Following talks, they are now preparing a draft law that will define crypto as an ‘analogue of currencies’ rather than digital financial assets

The story

In a report by Russian newspaper Kommersant, it was revealed that the government and the Bank of Russia reached an agreement on how to regulate cryptocurrencies.

This agreement includes a new law, set to be drafted by February 18, that will define crypto as an analogue (a person or thing seen as comparable to another) of currencies rather than digital financial assets.

The report also included the rule that crypto can only be used in the legal sector with full identification, through the banking system, or via licensed intermediaries.

Under the proposed law, crypto transactions of over 600,000 rubles (roughly $8,000) will have to be declared or will constitute a criminal offence. Fines will also be levied on those who illegally accept crypto as a means of payment.

To learn more about cryptocurrency and crypto mining visit our learning resource here.