The Russian government and its central bank have agreed to recognise digital assets, like Bitcoin, as a form of currency, according to local reports.
Russian newspaper Kommersant reported that the two are currently working on legislation that will define crypto as an “analogue of currencies” from 18 February, rather than digital financial assets.
Bitcoin transactions and possession are allowed currently if carried out through a bank or a peer-to-peer exchange licensed within Russia.
According to the report, crypto transactions over roughly US$8,000 would have to be declared, otherwise it could be considered a criminal act.
Read: Russia to clamp down on crypto usage and mining over fears it threatens financial stability
The news may come as a surprise following a report published last month that the Bank of Russia called for a nationwide ban of cryptocurrencies.
However, the proposals were opposed by the Russian Ministry of Finance, who urged the government to pursue regulation, warning a total ban could lead to Russia falling behind in technology.