According to many sources, while there will be strict regulations regarding cryptocurrencies in the forthcoming draft law, The Russian government calls bitcoin and cryptocurrencies currency.

The Russian government calls bitcoin and cryptocurrencies money

The Russian cabinet is said to have canceled an agreement with the central bank to issue cryptocurrencies. Detailed media reports from Kommersant and Cnet say that the agreement will be presented in the form of a bill on February 18th.

Although the draft document is expected to impose a stringent set of restrictions on cryptocurrency ownership and circulation as crypto exchanges come under one roof, the document, while tightly regulated, will describe a cryptocurrency as more of a “currency analog” of sorts. define as a “digital financial asset”.

The media outlet also added that cryptocurrencies can only be used “in legal areas.”

People who want to buy or sell cryptocurrencies must give “their full names, phone numbers, passport details, as well as bank account details and email addresses” to banks and vehicles, media reported.

If passed, the law would also aim to criminalize unreported cryptocurrency transactions of more than $8,000 and impose fines on any business or individual accepting cryptocurrency as a form of payment.

Additionally, cryptocurrency transactions over 600,000 rubles (about $8,000 USD) must be declared or constitute a criminal offense. Fines are also imposed on those who illegally use cryptocurrencies for payments.

These measures will force all crypto exchanges and brokers to register with a central authority — and will force all foreign trading platforms to obtain a license to operate or cease their operations in Russia.

Will Russia Really Accept Cryptocurrencies as Currency? Why?

Russian lawmakers have been bogged down on the issue of cryptocurrency regulation for several years, largely because many forces within the government — most notably the Treasury — advocate a looser approach to regulation, while the central bank has repeatedly called for a ban on cryptocurrencies.

This standoff has left the legal system in limbo and politicians and members of the judiciary are unsure how cryptocurrencies should be defined. Previous legislation has referred to cryptocurrencies as a form of “intangible assets,” and vague terms like “digital assets” and “digital financial assets” have been used to define coins like BTC.

Russian politicians and legal experts agree that the terms lack clarity and have urged the government to approve legally binding definitions for terms such as “blockchain”, “cryptocurrency” and “cryptocurrency”, “cryptocurrency mining” and “cryptocurrency”. . . Therefore, it seems likely that labeling crypto as a “similar currency” has no incentive for crypto adoption.

The cabinet deal with the central bank may have come after direct intervention by President Vladimir Putin, who mentioned “resources” related to Russia’s cryptocurrencies earlier this year. But Putin’s previous comments on cryptocurrencies, while somewhat optimistic at times, are still defensive.

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