Crypto to be OK’d for circulation in Russia, as ban concerns fade
Russia’s central government agencies reached an agreement to regulate cryptocurrencies by mandating licenses for exchanges and taxing large transactions on Tuesday, shelving concerns of a blanket ban proposed by the central bank last month.
Fast facts
- Russian business newspaper Kommersant reported the government and the Bank of Russia are preparing a draft law by Feb. 18 to classify crypto as a form of currency rather than digital financial assets.
- The document, which was signed off by the central bank and the finance ministry, stated that crypto trading will be strictly regulated with a focus on investor protection.
- The Bank of Russia last month issued a report calling cryptocurrency a pyramid scheme and recommending a comprehensive ban, while the Russian finance ministry suggested regulating crypto rather than banning it.
- The government said the move to legitimize crypto circulation in its economy will minimize the threat to financial stability and reduce the use of crypto in illegal activities.
