(Russian Government) The Russian government has announced its intention to come up with draft legislation or amend existing laws that will see the country recognize digital assets as a form of currency.
The proposed legislation is expected not later than February 18 and is reportedly seeking to classify cryptos as an “analogy of currencies” rather than digital financial assets.
The regulation will seek to integrate a way to guide the circulation of crypto in Russia’s financial system while also maintaining a grip over the cash flows of credit institutions.
Under the proposed rule, crypto use as a currency will adhere to proper identity checks through licensed intermediaries or the banking system. Operations that exceed R 600,000 or $8,016 will be disclosed.
Russian officials say the regulation would safeguard its citizen’s rights in crypto space while ensuring that players have sufficient liquidity for an additional layer of protection.
Plans are also underway to compel the market players to educate the citizens about the risks of crypto assets.
Russia defends the proposed regulation saying the absence of guides creates a shadow economy, with heightened fraud instances.
The announcement, which comes after government officials agreed with the country’s central bank, is a change of stance after Russia threatened to ban miners and crypto operations due to the risks to the financial system.
BTCUSD is down -0.95%.
