The government and central bank in Russia have reportedly shaken hands on an agreement that will see crypto having proper regulations in the nation, as revealed on February 8th. 

Specifically, Russia’s government and central bank are reportedly now collaborating on draft legislation, which will offer a definition for crypto as an “analogue of currencies”, instead of digital financial assets, and commenced to be introduced on Feb. 18. 

Cryptocurrencies are reportedly only allowed to operate in the legal sphere under the condition that it finalizes the identification process via the banking network or licensed intermediaries.

Kommersant further remarked that Bitcoin (BTC) transactions and possession of cryptocurrency in the Russian Federation will face no barring. 

Nonetheless, the process has to be completed via a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange licensed in the nation.

The report additionally emphasized that cryptocurrency transactions exceeding the threshold of 600,000 rubles (approximately $8,000) would need to be declared. Otherwise, it would be viewed as a criminal act. 

Those who accept cryptocurrencies as payment in an illegal manner will reportedly be subjected to fines.

The development reportedly surfaced after months of speculation regarding the Russian authority dealing with digital currencies. Despite the lack of clarity regarding what this decision will mean for businesses and citizens in Russia, the nation seems to be gradually adopting a pro attitude towards the concept of crypto. 

Previously, the Bank of Russia called for a nationwide crypto prohibition in a report that warned about the speculative nature of the sector, which then faced an opposing attitude from the Russian Ministry of Finance.