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Russia wants to recognize crypto as a form of currency

Updated: Jul 25, 2024
Published: Feb 9, 2022
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According to local news reports, authorities in Russia are planning to recognize digital assets as currency.

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Russian regulators have reached an agreement

Russian newspaper Kommersant reported this morning and later tweeted that the government and the Bank of Russia have reached an agreement on how Russia should regulate cryptocurrencies. They are now preparing a draft law, expected by February 18. It will define cryptocurrencies as "analogue of currencies" rather than digital financial assets.

The report says that it will only be possible to use cryptocurrencies "in the legal sector" with complete identification through the banking system or licensed intermediaries. It also plans to introduce an "obligation" for market participants to educate Russian citizens about the risks associated with digital assets. Further details from today's Kommersant report indicate that crypto transactions of more than 600,000 rubles (about $8,000) must be declared or constitute a criminal offense.

A big change in plans

The agreement is a significant reversal after the Bank of Russia proposed to ban miners and various other crypto transactions last month because they could jeopardize the country's financial system. Several Russian regulators and lawmakers, including the Ministry of Finance, the Federal Security Service, the Ministry of Internal Affairs, the Federal Tax Service, and others, were involved in the decision-making process on this new approach.

Two weeks ago, Bloomberg already reported that Russian President Vladimir Putin supported plans to regulate crypto mining. At the time, Putin opposed calls from the Central Bank for a blanket ban on cryptocurrencies. The Russian president stated that the country could gain "competitive advantages" from allowing crypto mining activities.

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