Russia is the latest country to throw its support behind cryptocurrency. According to a Tuesday report, both the Russian government and the country’s central bank have struck a consensus on cryptocurrency regulation. However, the report stated that the proposed regulation would have certain conditions attached.
The Russian authorities will be drafting a law that recognizes cryptocurrency as an ‘analog of currencies’ instead of digital financial assets. This law will be taking effect on Feb. 18. In light of this, cryptocurrency transactions are not outlawed, but they must be performed through a licensed platform— either a bank or a P2P exchange.
The proposed regulation comes with a proviso, which states that users will document crypto transactions of more than 600,000 rubles (around $8000). Failure to declare transactions in that category will be considered an offense. The draft will also include a penalty for those who illegally accept crypto as payment.
The decision to regulate crypto appears to be relieving, as speculations were rife on what the Russian government would arrive at. Furthermore, it is a plus for global crypto adoption and users of cryptocurrency in the country.
The latest development widely contrasts with a previous one in January, where the Central bank clamored for a crypto ban while warning investors against the speculative industry. The bank reportedly warned financial institutions against facilitating crypto transactions.
However, in a contrary opinion stated by Ivan Chebeskov, an official in the Russian Ministry of Finance, he advised authorities to opt for a lenient approach consisting of regulations. Chebeskov added that a ban would set the country back in technology. Russian President Vladimir Putin holds a similar opinion. Meanwhile, Russia’s major opposition the US is also taking a regulatory approach towards cryptocurrency.
