Russia Is Reportedly Ready To Treat Crypto Like Currencies

Russian business newspaper Commersant has recently reported that the Russian government and the Bank of Russia have reached a consensus deal on how to treat cryptocurrencies in the future.

Russia Changes Its Mind on Crypto

Previously, the Bank of Russia wanted to ban crypto mining and transactions inside the country as it believed that cryptocurrencies could hurt the country’s financial stability.

However, Russia’s Finance Ministry saw crypto as a potential source of revenue and argued against the potential ban. When Russia’s President Vladimir Putin told the sides to come to a consensus on crypto regulation, it was obvious that some deal would appear soon.

According to Commersant, the draft law should be ready by February 18. Cryptocurrencies would be treated as currencies rather than “digital financial assets”.

Their use in the financial industry will be allowed with full identification of their users. Transactions are expected to be made through the banking system or through licensed intermediaries. In general, crypto regulation is expected to be similar to foreign currency regulation in Russia, although it will likely be stricter.

Interestingly, Commersant notes that crypto mining is not present in the draft law, so it will remain in the “grey” segment of the law for now.

Is It Bullish for Crypto Markets?

The news on Russian legislation should not have a significant near-term impact on Bitcoin, Ethereum, and other cryptocurrencies which are currently driven by market momentum and fluctuations in risk appetite.

Taking a look at the big picture, Russia’s sudden desire to regulate cryptocurrencies instead of banning them shows that the crypto market has grown too big to ignore, which is bullish for crypto.

At the same time, hardcore crypto fans will certainly try to avoid the system that pushes crypto transactions through the traditional banking system, as it eliminates the key idea of decentralization. In this light, it remains to be seen whether Russian miners (when legislation emerges) or Russian crypto traders and investors will eagerly follow the new rules.