Russian Government And The Central Bank Reached an Agreement to Treat Bitcoin as a Currency

According to a Tuesday announcement, Russia’s government and central bank have achieved an understanding of how to regulate cryptocurrencies. The Russian government and central bank are currently working on a draught law that will designate cryptocurrency as a currency analogue rather than a digital financial asset, which is due to be released on February 18. Only complete identification through the banking system or regulated intermediaries would allow cryptocurrencies to function in the legal industry. According to Kommersant, Bitcoin (BTC) transactions and cryptocurrency holding are not outlawed in the Russian Federation. All of these crypto services must be done through a digital currency exchange organizer (a bank) or a peer-to-peer exchange licensed in the country. The report also states that bitcoin transactions worth more than 600,000 rubles ($8,000) must be reported or they would be considered illegal. Fines will be imposed on those who illegally take Bitcoins as payment. This news comes after months of discussion about how Russia might 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 plan to outlaw digital currency, t...