According to a statement released on Tuesday, the Russian government and the country’s central bank have agreed to draft legislation that Russia recognizes cryptocurrencies as a currency.
After Russia plans to ban digital assets to integrate crypto into its financial system, we can say that it has made a sudden turn in its crypto policy. On Tuesday, February 8, the Russian government released a report stating that they will submit a crypto regulatory draft by February 18.
The Russian government is working on a regulation where the distribution of digital assets will occur only through banking systems or licensed intermediaries. In this way, any action taken outside the legal sector will become a criminal offence. In addition, heavy fines will be imposed on those who illegally consider crypto as a means of payment.
One of the most important goals of Russia’s crypto policy will be to integrate digital assets into the country’s own financial system. The government said this would prevent digital assets from being used in financial crimes while securing the rights of ordinary private investors. The following statements were used in the report:
“The protection of citizens’ rights will be ensured by licensing requirements for cryptocurrency platforms, as well as separating investors from qualified and unqualified.”
How Has Russia Headed The Crypto Market?
Previously, the central bank of Russia was considering a complete ban on the use of digital assets. However, government agencies soon intervened in the ban initiative, citing some potential opportunities in this rapidly developing market.
According to local news outlet RT, Russia could raise a total of 1 trillion rubles, or 13 billion dollars, by issuing and taxing digital assets.
In addition, authorities are evaluating potential opportunities in the crypto mining space. Russia is currently the third largest Bitcoin miner in the world after the United States and Kazakhstan.
It will be interesting for the market to see more clarity on Russia’s legal stance on crypto this month.