Russia likely to recognise crypto as form of currency: Report

According to local media reports, Russia will soon recognize cryptocurrency as legal currency.

According to Kommersant, the Russian newspaper Kommersant, the government will present a draft of legislation by February 18 that will aim at recognising cryptocurrency as an “analogue currency”.

This report comes almost a month after the Bank of Russia demanded a blanket ban crypto-related operations due to their potential “destabilizing effect” on the country’s finances.

The Bank of Russia and the Russian government have reached an agreement on a future regime to allow the circulation of cryptocurrency in Russia, in apparent policy reversal, according to the Kommersant report.

CNBC TV18 reported that the Russian media outlet stated that they would prepare a draft law regarding the circulation of digital currency in Russia before February 18. In which cryptocurrencies are recognized as an analogue to currencies and not digital financial assets, CNBC TV18 said.

Local media reported that crypto transactions up to 600,000. rubles (roughly $8,000), would be allowed after the law changes are implemented. They stated that fines would be imposed for amounts exceeding 600,000. rubles.

According to reports, the Russian Finance Ministry and Bank of Russia would either create a separate bill or amend legislation to modify laws governing government digital assets. They stated that there is a possibility that the new regulation to legalize cryptocurrencies will be in place by the end of 2022 or as soon as 2023.