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The Russian government and central bank have agreed to accept Bitcoin as a form of payment

Cryptocurrency transactions worth more than 600,000 rubles ($8,000) must be reported; otherwise, they may be considered illegal.

According to a Tuesday announcement, Russia’s government and central bank have achieved an agreement on how to regulate cryptocurrencies.

Russia’s government and central bank are now working on a draught law that will classify cryptocurrency as a “analogue of currencies” rather than digital financial assets, which will go live on February 18. Only complete identification through the banking system or regulated intermediaries would allow cryptocurrencies to function in the legal industry.

Bitcoin (BTC) transactions and cryptocurrency holding are not outlawed in the Russian Federation, according to Kommersant, but they must be done through a “digital currency exchange organiser” (a bank) or a peer-to-peer exchange licenced in the country.

According to the study, bitcoin transactions worth more than 600,000 rubles ($8,000) must be declared; otherwise, they may be considered a criminal conduct. Fines will be imposed on those who illegally take bitcoins as payment.

This news comes after months of conjecture about how Russia will deal with digital currencies. While it is unknown what this decision will entail for Russian businesses and citizens, it appears that the country is gradually warming to the concept of cryptocurrencies.

In a report released in January, the Bank of Russia urged for a statewide crypto prohibition, citing the industry’s speculative nature. As part of the recommendation to restrict digital assets, the bank also stressed that financial firms should not support crypto transactions.

The plan, however, was met with criticism from the Russian Ministry of Finance. Ivan Chebeskov, a ministry official, stated a few days following the central bank’s proposal for a ban that the government should regulate crypto rather than outright prohibit it. He cautioned that a blanket ban would put Russia behind the times in terms of technology.

According to reports, President Vladimir Putin is in favour of regulating the country’s crypto mining industry.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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