Russia likely to recognise, regulate cryptocurrency as form of currency in 2022: Report

cnbctv18.com:

Russia may soon become the latest country to recognise cryptocurrency as a form of currency as the government and the country’s central bank have reached an agreement on how to regulate the digital asset, local media reports suggest.“The government and the Bank of Russia have agreed on a future regime for the circulation of cryptocurrencies in Russia. 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,” Russian newspaper Kommersant said on Twitter and also published a report on the same.According to the report, cryptocurrencies’ circulation in the legal sector will be possible only with full identification through the banking system or licensed intermediaries.The development comes weeks after Russia's central bank called for a blanket ban on cryptocurrencies.

The ban, proposed in January, prohibits cryptocurrency trading, mining as well as usage. If the law comes into force, only owning cryptocurrencies will be allowed in Russia and no other related activities, according to reports.Russian authorities granted cryptocurrencies legal status in 2020, but their use in payments was never authorised.