REGULATION

Russian Central Bank compromises? Recognizes cryptocurrencies such as Bitcoin as "quasi-currency," transactions over 8,000 USD must be declared

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Russian Central Bank compromises? Recognizes cryptocurrencies such as Bitcoin as "quasi-currency," transactions over 8,000 USD must be declared

The Central Bank of Russia has traditionally taken a prohibitive stance towards Bitcoin, but there has been a sudden shift in attitude. The Russian government is drafting a bill that would categorize cryptocurrencies as "analogues of currencies" rather than digital financial assets. As a result, crypto transactions exceeding 600,000 rubles (approximately $8,000) must be declared, or else it will be considered a criminal offense.

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According to a government announcement on the 8th, the Russian government has approved legislation to regulate the circulation of digital currencies, stating that a complete ban on crypto-related transactions is not feasible and that a legal cryptocurrency market will be established through legislation.

The announcement explicitly states that Russia does not prohibit Bitcoin trading and owning cryptocurrencies. However, transactions must be completed through bank exchanges or peer-to-peer exchanges with government approval. The announcement also emphasizes that transactions exceeding 600,000 rubles (approximately $8,000) must be reported, or fines will be imposed.

In early February, the Russian Central Bank announced Atomyze as the first registered digital asset management and tokenization service company in Russia.

The Russian Central Bank has consistently expressed strong opposition to the circulation of crypto assets and has banned cryptocurrencies, prohibiting the establishment of domestic cryptocurrency exchanges. At the end of 2021, the Deputy Chairman of the Russian Bank stated that Russians must use foreign exchanges if they want to invest.

Ivan Chebeskov, Director of the Financial Policy Department at the Russian Ministry of Finance, recently warned that the government should regulate cryptocurrencies rather than ban them, as a complete ban could lead to Russia falling behind.

This article is authorized and reprinted from Horizon News Network.