While Nigeria continues to ban financial institutions from dealing in cryptocurrency, other countries, like Russia and India have decided to take a different approach.
The Bank of Russia has reached an agreement on how to regulate cryptocurrencies. They are now preparing a draft law, expected by February 18, which will define crypto as an “analogue of currencies” rather than as digital financial assets.
Russian newspaper, Kommersant, reported this morning, and later tweeted, about an agreement on how to regulate cryptocurrencies.
Read: IMF warns that no single country can stop cryptocurrency on their own
The cryptocurrency space has shown resistance to government pushback as Nigeria’s peer-to-peer transactions rose by 16% on an annual basis, despite the crypto ban. Nigeria’s P2P volumes on two major P2P platforms (Paxful and Localbitcoins) currently stand at $400 million, followed by Kenya with more than $160 million and South Africa with $117 million.
In lieu of the growing adoption, Russia has sort to benefit and position herself to get profitable via the blockchain revolution.
Read: Bitcoin hash rate hits all-time high despite market meltdown
What you should know about Russia’s crypto adoption plan
- The report stated that the circulation of crypto in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries.
- Operations equivalent to more than 600 thousand rubles (roughly $8,000) must be declared.
- Transactions outside the legal sector for such amounts will become a criminal offense and an aggravating circumstance under the Criminal Code.
- Fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment.
- The news comes just weeks after the Bank of Russia pushed for a blanket ban on crypto in a report issued in January, arguing that the speculative nature of the industry posed a significant threat to the financial stability of citizens.
- The final concept is mainly based on the positions of the Ministry of Finance. Until February 18, the ministry and the Bank of Russia must formulate either a separate bill or amendments to the law on the CFA and other laws for its implementation
Read: Nigeria’s cryptocurrency ban: A legal analysis
In case you missed it
India’s central bank has announced plans to launch its digital version of the rupee in the next financial year.
The Indian government also plans to tax cryptocurrencies and NFTs as the country moves closer to recognizing cryptocurrencies as legal tender.