Digital Assets May Now be Recognized as a Form of Currency in Russia

8:58 am, Wed, 9 February 22

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There was some uncertainty regarding Russia’s stance towards digital currencies a while back. However, it has now been cleared as the authorities are reportedly set to recognize crypto assets as a form of currency.

Previously, the Bank of Russia supported a blanket ban on digital currencies. This was suggested as the crypto industry was speculated to be a threat to the financial stability of individual citizens.

Now, however, it seems that the sentiments and stance towards crypto in the country have shifted as the authorities will be working to regulate cryptocurrencies.

The crypto market is also doing well at the moment as the prices of BTC and ETH have seen significant surges.

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The Initiative of Russian Authorities

According to reports in January, the Bank of Russia pushed for a ban considering the volatile nature of the digital assets that were anticipated to be a threat to the financial stability in the country. The same crypto ban proposal also stated that any financial institutions that support crypto transactions should also be stopped.

However, the situation seems to have taken a turn as the authorities are now set to regulate crypto in the country.

The news was reported this morning by the Russian newspaper Kommersant. According to reports, the government and the Bank of Russia have come to an agreement regarding how crypto assets can be regulated in the country.

A draft law is being prepared, which will be completed by 18th February. Cryptocurrencies will not be recognized as digital financial assets but will be defined as “analog of currencies” according to the law.

The report also stated that people will only be able to use crypto assets “in the legal sector” with:

  • Full identification
  • Through licensed intermediaries
  • Through the banking system

President Vladimir Putin is also reportedly supporting plans to regulate the crypto mining industry in Russia.

Apart from the plans to regulate crypto, consequences have also been made clear for people who will illegally accept digital currencies as a form of payment. The support this industry is receiving from various parts of the world can indicate a prosperous cryptocurrency future. However, it can only be speculated at the time.

What Should Crypto Investors Know?

After seeing a bearish momentum for several weeks, the crypto market is finally seen to move upwards, with the prices of all the major crypto assets surging.

Prominent digital currencies such as Bitcoin and Ethereum were noted to reach important price levels. The upward price movement has not only grabbed the eye of individual investors but has also gained attention from major entities.

The resilience of long-term crypto investors and news reports such as countries regulating crypto indicates the significance of digital currencies to a great extent.

Therefore, if you want to step into the crypto space, make sure you opt for some of the best platforms from the crypto exchanges list.

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