After several twists and turns, the Government of Russia and the country’s central bank reached an agreement regarding BTC and other cryptocurrencies.
According to a statement issued on Tuesday by the government, crypto-assets will be treated in the country as currency.
Kommersant, one of Russia’s largest business newspapers, reported on Wednesday that the authorities intend to develop a bill.
The text will be presented on the 18th of February. It will define cryptocurrencies as “currency analogue” and not digital financial assets.
By regulating cryptocurrencies like other forms of currency, the Russian government will be able to provide clear regulations for businesses and individuals.
Also according to Kommersant, once the new law comes into force, the circulation of cryptocurrencies will only be possible with full identification and through the Russian banking system or licensed intermediaries.
In addition, transactions exceeding 600,000 rubles ($8,030) must be declared. If the declaration is not made, it will be considered a “criminal offence”.
Also, anyone who illegally accepts cryptocurrencies as a form of payment will be fined.
Russia will regulate cryptocurrencies
In its statement, the Russian government highlighted that it “determined the future of digital currencies in Russia”:
“The movement of such financial assets will be regulated by the State with strict obligations for all professional market participants with an emphasis on protecting the rights of ordinary investors.”
The objective, according to the statement, is to integrate the mechanism for the circulation of cryptocurrencies in the financial system. At the same time, the government wants to guarantee the control of cash flows in the circuit of credit institutions.
“The protection of citizens’ rights, in addition to dividing investors into qualified and non-qualified, will be ensured through licensing requirements for cryptocurrency platforms.”
Also according to the text, crypto platforms will be required to have financial resources to ensure liquidity and capital adequacy.
The government also plans to oblige companies in the sector to inform citizens about the risks associated with cryptocurrencies.
Participating in the discussion of regulation of the crypto market in Russia, the Ministry of Finance; the Bank of Russia, Rosfinmonitoring; the Federal Security Service; the Ministry of Internal Administration; the Federal Tax Service; the Ministry of Economic Development and the Public Ministry.
“Implementation of the concept will ensure the creation of the necessary regulatory framework, bring the digital currency industry out of the shadows and create the possibility for legal business activities,” concluded the statement.
Come and go in Russia
Russian bank was skeptical about the introduction of cryptocurrencies into the economy. In late January, the monetary authority proposed banning mining, issuing, circulating and trading cryptocurrencies in the country.
But the following week, Russian President Vladimir Putin declared publicly opposed this idea. According to him, Russia has “certain competitive advantages” for cryptocurrency mining, indicating a favorable position for the industry.
Then it was the turn of Finance Minister Anton Siluanov to suggest that financial institutions could provide services with cryptocurrencies.
So, with the new statement, it seems that Putin and the pro-crypto Russian government have won. According to Kommersant, legislation that recognizes cryptocurrencies as currencies is expected to take effect in the second half of 2022 or 2023.