According to local media sources, Moscow may soon now become the latest country to adopt cryptocurrencies as a kind of currency, as the government and the central bank have negotiated a deal on how to administer the digital asset, reports moneycontrol.com
“The Bank of Russia and the Russian government have reached an agreement on a future framework for cryptocurrency circulation in Russia.” They will prepare a draught law on the proliferation of cryptocurrency exchanges in the Russian State before February 18, in which cryptocurrency recognized as analogs of currencies rather than digital financial assets,” Russian daily Kommersant wrote on Twitter. According to the research, cryptocurrencies will only be able to circulate in the legal field if they can be fully identified via the financial system or regulated intermediaries.
Russia’s central bank
The news comes following Russia’s central bank asking for a total ban on cryptocurrency a few weeks ago. The ban, which was introduced in January, forbids cryptocurrency trade, mining, and use. According to reports, if the rule takes effect, just possessing cryptocurrency and no other connected activities will be permitted in Russia.
Cryptocurrencies were granted legal status in Russia in 2020, although their usage in transactions was never permitted. For years, Russia has been a vocal opponent of cryptocurrencies, claiming that these can be used for unlawful purposes and hence calling for regulation.
Risks Alert; Need to Legalize Them
The usage of cryptocurrencies “poses considerable risks to Russian people’s well-being and the financial system’s stability,” according to a central bank assessment.
As per the latest Kommersant story, Russia’s Ministry Of finance & Bank of Russia must develop either a different bill or revisions to the CFA statute and other laws by February 18 to put it into effect. According to the article, at least some of the new digital currency laws will be implemented in the 2nd half of 2022 or beginning in 2023.
Citizens in Russia aren’t forbidden from possessing or transacting cryptocurrencies, but they must do so through the organizer of the digital money trading system, which is either a bank with a global license or an exchanger of p2p that is legal in Russia, according to the study.
Meanwhile, the article claims that crypto transactions worth more than 600,000 rubles ($8,000) will be ruled unlawful and prosecuted. Fines will be imposed on anyone who takes cryptocurrency as a form of payment illegally.