Russia is likely to soon recognize Bitcoin (CRYPTO: BTC) and other cryptocurrencies as a form of currency as the government and the Central Bank of Russia have reached a deal on their regulation, the Russian newspaper Kommersant reported.
What Happened: The Russian authorities are now preparing a draft law, expected by Feb. 18, that would recognize cryptocurrencies as an “analog of currencies” and not digital financial assets, as per the report.
The circulation of cryptocurrencies in the legal sector would reportedly be possible only with full identification, through the banking system, or licensed intermediaries.
Cryptocurrency transactions valued at over 600,000 rubles ($8,100) must be declared and transactions done illegally for such amounts would be declared a criminal offense, the report added.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The move comes after it was reported last month that the Central Bank of Russia wanted to ban trading, mining and usage of cryptocurrencies in the country, while allowing Russian citizens to own them.
Russia’s Finance Ministry strongly opposed the central bank’s proposed cryptocurrency ban on the grounds that a ban would be detrimental to the nation’s technological development.
Russian President Vladimir Putin has also said cryptocurrencies have value and he finds their use for payments acceptable.
Price Action: Bitcoin is down 1.4% during the past 24 hours, trading at $43,746.79 at press time.
