Russia’s authorities to equate bitcoin with foreign currency

However, the cryptocurrency will not receive the status of a means of payment

11.02.2022 - 12:30

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What’s new? The Russian government has decided not to consider bitcoin as a virtual asset, but to equate it with foreign currencies. The Ministry of Finance together with the Bank of Russia should prepare a draft law on the circulation of cryptocurrencies in the state by February 18. The document will recognize cryptocurrencies as analog of foreign currencies rather than digital assets. According to the Kommersant newspaper, the bill specifies requirements for buyers and sellers of virtual assets, foreign cryptocurrency exchanges, and banks.

Information on the Kommersant website

What does the bill say? A user who plans to transact in cryptocurrency has to be fully identified through a banking system or licensed intermediaries. To buy or sell digital assets, a registered e-wallet and a cryptocurrency wallet linked to it are required. These conditions are the same for both individuals and legal entities. Transactions in cryptocurrency equivalent to more than 600 000 Russian rubles have to be declared. All transactions conducted outside the legal sector will be treated as a criminal offense.

What do the authorities say? The Cabinet of Ministers’ press office stated that it is necessary to introduce awareness of the increased risks associated with digital currencies.

“The protection of citizens’ rights, in addition to the division of investors into qualified and unqualified, will be ensured through the licensing requirements of cryptocurrency platforms. Those, in turn, will be required to have financial safety cushions on liquidity and capital adequacy.”

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