Russia wants to recognize Krypto as a currency

Russia wants to recognize Krypto as a currency

The Russian government and the central bank of the country have according to A Explanation Tuesday.

The agreement is a significant reversal after the Bank of Russia proposed last month to ban Miner and several other cryptooperations because they feared that they could endanger the country's financial system.

news agency Kommersant first reported The announcement on Tuesday. It goes without saying that cryptos are to be classified as a "analogue of currencies" and not as financial digital assets. According to reports, legislation will be worked out by February 18 at the latest.

The Russian regulation is aimed at integrating a mechanism for the circulation of digital currencies into the country's financial system and at the same time ensuring control over the cash flows of the credit institutions, a rough translation of a side effect Design of a document reads.

"The determination of rules for the circulation of cryptocurrencies and control measures will minimize the threat of the stability of the financial system and reduce the use of cryptocurrencies for illegal purposes, since a complete ban on the business segment associated with its circulation is impossible."

The use of crypto as a currency will only be possible after proper identity tests via the country's banking system or licensed intermediaries, while operations have to be declared over 600,000 rubles ($ 8,016) according to the document.

transactions outside of these proposed legal parameters are considered a crime, and it is expected that fines for the illegal acceptance of cryptos are expected as a means of payment.

civil servants also said that the regulation would guarantee the protection of civil rights as part of a licensing regime that is aimed at providers of cryptocurrencies. Providers must have “financial airbags” in relation to liquidity and appropriate capital.

"The complete lack of regulating this industry and the introduction of a ban will increase the proportion of the shadow economy, an increase in fraud and destabilization of the industry as a whole," says the document.

In addition, it is planned to introduce a “obligation” for market participants to clarify Russia's citizens about the risks associated with digital assets.

Several Russian regulatory authorities and legislators, including the Ministry of Finance, the Federation of Security Service, the Ministry of the Interior, the Federation Tax Service and others, were involved in the decision -making process.

"The implementation of the concept will ensure the creation of the necessary regulatory framework, get the digital currency industry out of the shade and create the possibility of legal business activities," says the explanation.

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The contribution Russia Moves to Recognition Crypto as a Form of Currency is not a financial advice.