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On Tuesday, the Russian government and its central bank have reached an agreement to regulate cryptocurrencies by authorising licenses for exchanges and taxing large transactions.
Russian news outlet, Kommersant reported that a legislation which includes amending existing laws will be drafted to classify cryptocurrency as a form of currency by 18th February 2022.
The report also stated that cryptocurrency transactions exceeding 600,000 Russian Rubles (US$8,000) must be declared.
Transacting outside “digital currency exchange organiser” (a bank) or a peer-to-peer licensed exchange will be considered a criminal offense, and those who illegally accept cryptocurrencies as payment will be penalised.
This comes after the Bank of Russia opposing cryptocurrency mining and other similar operations over concerns of affecting the country's financial system just last month.
On the other hand, the Russian finance ministry suggested on regulating cryptocurrency rather than banning it, as it could result in Russia falling behind in technology.
It is added that the move to legitimise cryptocurrency will minimise the threat to the country's financial stability and reduce the use of cryptocurrency in illegal activities.
Russia’s sudden move to regulate cryptocurrency is expected to propel other governments in adopting cryptocurrency soon, according to industry experts.
Just last month, Thailand announced that the benefits and risks of cryptocurrency will be reviewed as a means of payment for goods and services.
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