Russian Government and central banks have agreed to treat bitcoin as a currency according to the announcement made on Tuesday.

There were lots of speculations around the status of Bitcoin in the federal state. Russian authorities are now working on the draft law that will define Crypto as an ‘analogue of currencies’. It is set to launch on February 18th. Bitcoin will work as a legal currency instead of a digital financial asset.

The Crypto industry will need complete identification through licensed intermediaries such as banks to be considered legal. Moreover, illegal acceptance of crypto as payment will be fined. The coin owners have also declared the transaction of crypto worth 600,000 rubles ($8000) or more.

Also Read: $3.6 Billion recovered in Bitcoin

The transactions and possessions of cryptocurrencies are already allowed in the Russian federation, provided it is done through digital currency exchange organizers or licensed peer-to-peer exchange.

It is not clear how this decision will play out for businesses and individuals operating in the digital currency sector within Russia. Nonetheless, the country is gradually adopting a soft stance on cryptocurrencies’ existence.

The Central Bank in Russia had proposed a complete ban on cryptocurrencies due to the speculative nature of the industry. It also called on the financial firms to stop accepting crypto as means of payment. However, the Russian Financial Ministry opposed the proposal stating that a total ban will result in lagging in technology adoption.