Russian Government And The Central Bank Reached an Agreement to Treat Bitcoin as a Currency

The Russian government and central bank are currently working on a draught law that will designate cryptocurrency as a currency analogue rather than a digital financial asset, which is due to be released on February 18. Only complete identification through the banking system or regulated intermediaries would allow cryptocurrencies to function in the legal industry.

According to Kommersant, Bitcoin (BTC) transactions and cryptocurrency holding are not outlawed in the Russian Federation. All of these crypto services must be done through a digital currency exchange organizer (a bank) or a peer-to-peer exchange licensed in the country.

The report also states that bitcoin transactions worth more than 600,000 rubles ($8,000) must be reported or they would be considered illegal. Fines will be imposed on those who illegally take Bitcoins as payment. 

This news comes after months of discussion about how Russia might deal with digital currencies. While it is unknown what this decision will entail for Russian businesses and citizens. It appears that the country is gradually warming to the concept of cryptocurrencies. 

In a report released in January, the Bank of Russia urged for a statewide crypto prohibition, citing the industry's speculative nature. As part of the plan to outlaw digital currency, the bank also emphasized that financial institutions should not encourage crypto transactions.

The plan was met with criticism from the Russian Ministry of Finance. Ivan Chebeskov, a ministry official, stated that the government should regulate crypto rather than outright prohibit it. 

He cautioned that a blanket ban would put Russia behind the times in terms of technology. According to reports, President Putin is in favor of regulating the country's crypto mining industry.