Russian Government, Central Bank Reach Agreement on Recognising Crypto as a Form of Currency
The move to regulate crypto in Russia also means that possession of cryptocurrency in the country is no longer prohibited.
The Russian government and central bank made an agreement to regulate crypto as an “analog of currencies” instead of “digital financial assets.”
The updated regulation is part of a draft law that is slated to launch on Feb. 18, and will see approved cryptocurrencies such as Bitcoin function in lawful exchanges through the banking system or licensed intermediaries.
As part of the incoming framework, crypto transactions worth more than 600,000 rubles ($8,000) would have to be declared; otherwise, such transactions could be considered a criminal act. Those who illegally accept cryptocurrencies as payment will incur fines.
This week, Apple unveiled a new Tap to Pay feature for its iPhones that will enable businesses and merchants to conduct contactless point-of-sale transactions with Apple Pay, credit cards, debit cards and digital wallets.
The move also enables customers who use crypto payment methods such as Coinbase Card and Crypto.com Visa Card to use their holdings to make payments via Tap to Pay. However, it will most likely involve the conversion of crypto to fiat in real-time to do so.
Apple announced Stripe as the first platform to offer Tap to Pay on the iPhone and indicated that other payment platforms and apps will introduce the feature throughout 2022.
The price of XRP surged 30% this week on the back of positive developments in the long-running court case between Ripple Labs and the United States Securities and Exchange Commission (SEC).
According to court documents from last week, Judge Analisa Torres permitted Ripple to respond to the SEC’s memorandum of law in support of the motion to strike Ripple’s fourth affirmative defense. The judge also ordered for the unsealing of three documents concerning the case, including two email threads belonging to Ripple CEO Brad Garlinghouse and co-founder Chris Larsen respectively, as well as Garlinghouse’s deposition notice.
Shortly after the news was published, the price of XRP rallied around 30% between Feb. 3 and Feb. 7. The gains have held up well over that period, with CoinMarketCap data showing a 32% gain in XRP’s price over the past seven days at the time of writing.
The Russian government and the country’s central bank, Bank of Russia, appear to have reached an agreement on how to regulate Bitcoin and other cryptocurrencies in a plan to recognise crypto as a form of currency but not what the country considers to be digital financial assets (DFA). The agreement marks a significant U-turn after the Bank of Russia only last month proposed banning miners and several other crypto operations over concerns that they could endanger the country’s financial system.
Russian newspaper Kommersant reported that the government and the Bank of Russia have reached an agreement on how to regulate cryptocurrencies. Authorities are now preparing a draft law, expected by February 18, which will define crypto as an “analog of currencies” rather than as DFA.
The report further stated that it will only be possible to use crypto “in the legal sector” with full identification, through the banking system or via licensed intermediaries.
Russia Prepares to Recognize Crypto as a Form of Currency
According to local news, authorities in Russia are preparing to recognize digital assets as a form of currency.
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The Russian government and the Central Bank of Russia have reached an agreement on how cryptocurrencies will be regulated, Russian newspaper Kommersant reported this morning. They are now drafting a bill expected by February 18 that would define crypto as an “analog of currencies” rather than digital financial assets.