Russia Has Decided to Consider Bitcoin as Its Currency

For a long time in Russia, discussions have been going on about how to evaluate crypto currencies. After these discussions, the Russian government and the country’s central bank took action. Approved an agreement on the adoption of cryptocurrencies as currency. It is still not very clear what the new laws mean for Russian citizens and companies. But the country seems to be warming up to the idea of crypto money more and more. The Russian government and the country’s central bank have reached an agreement on how they will regulate cryptocurrencies, according to an announcement on Tuesday.

Government’s Move

The government and the bank are currently working on a draft law that will define crypto as an ‘analogue of currencies’ instead of a digital financial asset. Thus, from now on, crypto coins will be able to function only if they are fully verified through the banking system or licensed intermediaries. Owning and trading Bitcoin is prohibit in the Russian Federation. However, these should be a “digital currency trading regulator or a licensed peer-to-peer exchange” in December.

Cryptocurrency transactions exceeding 600 thousand rubles must also be reported, otherwise it will constitute a crime. TThose who consider cryptocurrency payments illegal will also be fin.

Bank of Russia had asked for a nationwide crypto ban in January, warning about the speculative nature of the sector. The bank also stated that financial companies should not perform crypto transactions. However, the Ministry of Finance of Russia opposed this proposal. Finance Minister Ivan Chebeskov said that the government should regulate crypto, rather than completely ban it, such a ban could leave the country behind on technology.