Russia Recognizes Cryptocurrencies as Property with Limited Domestic Use

Russia's State Duma has taken a significant step towards regulating the cryptocurrency market by passing a bill that recognizes cryptocurrencies as property. The bill, which aims to create a structured framework for crypto operations in the country, was approved in its first reading on April 22.

The proposed law, titled 'On Digital Currency and Digital Rights,' classifies cryptocurrencies such as Bitcoin and Ethereum as property under Russian law. This move is expected to attract foreign investment and promote cross-border trade using digital currencies.

However, the bill also imposes restrictions on domestic usage of cryptocurrency. Crypto cannot be used for everyday transactions within Russia, including paying for goods and services or salaries. The ruble will continue to be the only legal currency for internal transactions.

The bill also makes crypto mining legal, but with certain conditions. Miners must register their equipment and operate within Russia's infrastructure, allowing the government to track and regulate the industry more effectively.