By John Ikani
The government and central bank in Russia have reached an agreement on how to regulate cryptocurrencies.
They are now preparing a draft law, expected by February 18, which will define crypto as an “analogue of currencies” rather than as digital financial assets.
A document setting the principles for the regulation of cryptocurrencies appeared on the government’s official website on Tuesday night.
The document revealed that authorities expect to collect more than $13 billion as tax payments from the crypto market in Russia.
Notably, the plan has the support of the central bank, which had called for a ban on crypto mining and trading.
This is the second major regulatory cloud to have been lifted from the global crypto market in a month.
India last week took a step towards crypto legalization with a tax on digital asset transfers.
While it carries a hefty rate (30%), the tax was seen by many as putting the fifth-largest economy on track toward legitimizing crypto.
What you should know about Russia’s crypto adoption plan:
• The report stated that the circulation of crypto in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries.
• Operations equivalent to more than 600 thousand rubles (roughly $8,000) must be declared.
• Transactions outside the legal sector for such amounts will become a criminal offence and an aggravating circumstance under the Criminal Code.
• Fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment.