Crypto To Be Recognized As A Form Of Cryptocurrency By Russian Authorities

• Russian Authorities to recognize digital assets anytime now read the latest reports. The authorities are in the process of drafting a law that will define crypto as an “analogue of currencies.”

• The report further details that crypto can only be used with complete identification through a licensed middle party or the banking system in the legal sector.

• Last week, the reports suggested the central bank of Russia is imposing a blanket ban on crypto since the industry imposes a threat on the financial stability of its citizens. 

Russia’s latest reports have again created a buzz in the crypto space. As per the reports, Russia is all set to recognize digital assets as a form of currency. 

Authorities To Define Crypto As An “analogue of currencies.” 

Kommersant, a Russian newspaper, in a tweet revealed that the government and the Bank of Russia had made their decision on how to regulate cryptocurrencies. The authorities are now drafting a law that will outline crypto as an “analogue of currencies” instead of defining it as digital financial assets.

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According to the report, crypto can be utilized with complete identification via the banking system or licensed intermediaries in the legal sector.

Russia has taken the big move just after a report published in January stated that the Bank of Russia is preparing for a blanket ban. The reason behind it is the risk imposed by digital assets on the financial stability of citizens.

The central bank also asked to prevent financial institutions from crypto transactions under the proposal. 

Last month while Russia was amidst the debates on crypto regulation, the reports from Bloomberg suggested that President Vladimir Putin backs the Russian government planning to tax and regulate crypto mining rather than putting a blanket ban. 

Going a step further, President Vladimir also highlighted the key advantages of Russia as a mining destination. At the same time, many from the industry question whether it is practically possible to ban coin minting completely.

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Crypto Transactions Of Over $8,000 To Be Considered Criminal Offense. 

Kommersant’s report also details that the crypto transactions of more than 600,000 rubles (roughly $8,000) would need to be announced or will come in the category of a criminal offense. 

Further details state that the fees will be charged on anyone accepting crypto as a means of payment. 

Russia’s role in crypto mining has increased since China’s communist government declared a complete ban on all crypto mining activities.

According to the data from the Cambridge Center for Alternative Finance, Russia amounted to 11.2% of the global Bitcoin hashrate at the end of August and became the third-largest mining center in the world.

After Russia, the U.S and Kazakhstan are on the list with 35.4% and 18.1%, respectively.

While two days ago, as earlier reported, the Chairperson of the industry committee at the Duma, Parliament’s lower house, Vladimir Gutenev, stated that the individual miners should be subject to 15%.

At the same time, the mining companies should be taxed around 6% if the country decides to treat crypto as securities.