Russia Ready to Accept Cryptocurrency As a Form of Currency

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Russia Ready to Accept Cryptocurrency As a Form of Currency
Russia Ready to Accept Cryptocurrency As a Form of Currency

Countries accepting cryptocurrency as a form of currency have continued to receive mainstream attention. Last year, El Salvador adopted cryptocurrency as a form of currency (legal tender) for daily activities in the country.

Russian Authorities and Banks Set to Accept Crypto

According to local news reports on February 9, Russian authorities set to recognize the digital asset as a form of currency.

Russian newspaper Kommersant reported this morning and later tweeted that the government and Russian banks have reached an agreement on how to regulate cryptocurrencies. They are now preparing a bill, expected to be published by February 18, that will define cryptocurrencies as “analogues of money” rather than digital financial assets.

The report further notes that full identity cryptocurrency can only be used in the “legal sector” through the banking system or licensed intermediaries.

The news comes weeks after the Bank of Russia pushed for a blanket ban on cryptocurrencies in a January report, which argued that the industry’s speculative nature posed a significant threat to citizens’ financial stability. As part of the proposal, the central bank also said that financial institutions should stop allowing crypto transactions.

Another report shows that President Putin supports plans to regulate the country’s crypto mining industry.

More details in today’s Kommersant report suggest that crypto transactions over 600,000 rubles (about $8,000) would need to be declared or constitute a criminal offense. There will also be fines for those illegally accepting cryptocurrencies as payment.