Russia is likely to recognise cryptocurrency as a form of legal currency, local media reports said on February 9, adding that the country's central bank and the government have arrived at an agreement for the regulation of the virtual asset.
By February 18, the government will come up with a draft legislation that will be aimed at recognising crypto as "analogue of currencies", Russian newspaper Kommersant said.
The report comes nearly a month after the Bank of Russia, the central bank, called for a blanket ban on crypto-related operations citing their potential "destabilising effect" on the country's finances.
In an apparent policy reversal, however, the Bank of Russia has reached a consensus with the government "on a future regime for the circulation of cryptocurrencies in Russia", the Kommersant report said.
"Before February 18, they will prepare a draft law on the circulation of digital currencies in the Russian Federation, in which cryptocurrencies are recognised as an analogue of currencies, and not digital financial assets," CNBC TV18 quoted the Russian media outlet as stating.
The local media reports, which cited a Russian government document, said crypto transactions of only up to 600,000 rubles (roughly $8,000) would be permitted after the changes in the law are brought into effect. For amounts exceeding the 600,000 rubles limit, fines would be imposed, they said.The reports claimed that Russian's Finance Ministry and Bank of Russia would either draft a separate bill or move an amendment legislation to change the laws that government digital assets. A probability exists that the new regulation that legalises cryptocurrencies will be implemented in the second half of 2022, or from the start of 2023, they added.