Cryptocurrencies will be approved for circulation in Russia as fears about bans fade

On Tuesday, Russia’s top government agencies agreed to regulate cryptocurrencies by requiring exchange licences and charging big transactions, putting an end to fears over a blanket ban suggested by the central bank last month.

According to the Russian business website Kommersant, the government and the Bank of Russia are working on draught legislation to define cryptocurrency as a type of cash rather than digital financial assets by February 18.

The central bank and finance ministry both signed off on the agreement, which stressed that crypto trading would be rigorously regulated with an emphasis on investor safety.

The Bank of Russia published a study last month labelling cryptocurrencies a pyramid scheme and advocating a blanket ban, while the Russian finance ministry urged regulating rather than prohibiting cryptocurrency.

The government said that the decision to legitimate cryptocurrency circulation in its economy would mitigate threats to financial stability and discourage the usage of cryptocurrency for unlawful purposes.

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