Russia Moves to Legalize Bitcoin as Currency

• A report has emerged claiming that Russia is set to draft a bill to legalize Bitcoin and other cryptocurrencies

• On Tuesday, February 8, the Russian government released a report stating that a crypto regulatory draft will be introduced by February 18

• The government will make an arrangement where digital assets are distributed only through banking systems and licensed parties

The Russian government and the Central Bank have reportedly agreed to draft new legislation aimed at recognizing cryptocurrency as a form of currency.

The agreement is the opposite of a proposal made by the Bank of Russia last month that sought to miners and several other crypto operations.

The ban was suggested due to fears that mining could endanger the country’s financial system.

According to Russian news alert Kommersant, where the news first broke, it is understood that cryptocurrencies will be classified as standard currencies rather than digital assets.

The country will seek to integrate a mechanism for the circulation of crypto assets where control over cash flows will be maintained.

The country’s use of cryptocurrency as legal money will only be possible after proper identity checks via the country’s banking system or other recognized intermediaries, according to the document.

Read also: U.S Seizes $3.6 Billion in Bitcoin Stolen in 2016

Officials also said the regulation would ensure that citizens are protected by the government under this bill.

The country also plans to mandate the sensitization of citizens regarding the risks associated with cryptocurrencies by market participants.

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