Russian business newspaper Commersant recently reported that the Russian government and the Bank of Russia have reached a consensus agreement on how to deal with cryptocurrencies in the future.
Russia changes its mind about cryptocurrencies
Previously, the Bank of Russia wanted to ban cryptocurrency mining and transactions within the country because it believed that cryptocurrencies could harm the country's financial stability.
However, Russia's Ministry of Finance saw cryptocurrencies as a potential source of income and argued against the potential ban. When Russian President Vladimir Putin told the parties to reach a consensus on cryptocurrency regulation, it was obvious that some agreement would appear soon.
According to Commersant, the bill 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 should be made through the banking system or through authorized intermediaries. In general, regulation of cryptocurrencies is expected to be similar to that of foreign currencies in Russia, although it will likely be more stringent.
Interestingly, Commersant notes that crypto mining is missing from the bill, so it will remain in the “gray” segment of the law for now.
Is it bullish for the cryptocurrency markets?
News on Russian legislation is not expected to have a significant short-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 cryptocurrency market has become too big to ignore, which is good for cryptocurrencies.
At the same time, hardcore cryptocurrency 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 the legislation emerges) or Russian crypto traders and investors will enthusiastically follow the new rules.
How to trade cryptocurrencies?
There are several ways to trade cryptocurrencies, but the best one for beginners is to use popular platforms. Software such as Bitcoin Revolution they are easy to use and require a very low minimum investment to start trading.
Although it is also suitable for professionals in the sector, the software is so easy to use, that even a novice trader will find no difficulty in trading his first cryptocurrencies. Meanwhile, we ask you, what do you think of Russia's move? Let us know in the comments section below.