After banning Bitcoin, Russia will legalize it

The Russian government and its central bank are currently working on drafting legislation to define cryptocurrencies as an "analogue of currencies". In other words, if the bill is accepted, Russia will no longer consider cryptocurrencies as digital financial assets.

= A change in legal definition :

Russia only allows transactions and possession of bitcoin if they are carried out through a peer-to-peer bank or exchange. The new legislation considers cryptocurrency transactions over $8,000 undeclared as criminal offenses.

In effect, a central authority will oversee the process. The banking system or authorized intermediaries will have to identify cryptocurrencies. This will be an imperative step to enable them to operate in the legal sector.

=A surprise effect :

The announcement comes as last month the Bank of Russia called for a ban on cryptocurrencies.

Specifically, in January, the Bank of Russia called in a report for a nationwide ban on cryptocurrencies. The institution wanted to warn about the speculative nature of the industry. Eventually, the Russian Finance Ministry opposed the ban request and urged the government to continue the regulation. According to the ministry, a total ban could lead Russia to fall behind when it comes to technology.

According to Kommersant, the regulations will be presented in draft form to the legislative bodies by 18 February.