- The Russian government has moved to recognize Bitcoin as a form of currency.
- Meanwhile, Bitcoin holds above support at $43,000
NEW DELHI (CoinChapter.com) — The Russian government and the country’s central bank reached an agreement to draft legislation or amend existing laws recognizing cryptos, like Bitcoin (BTC), as a digital currency, as per a Tuesday announcement.
The proposed law, which the government plans to draft by Feb 18, would help regulate the circulation of digital currencies in the Russian Federation. As per a report by the Russian newspaper Kommersant, the legislation would recognize cryptos as an “analog of currencies, not as digital financial assets.“
However, Bitcoin and other cryptocurrency transactions in the legal sector would be dependent on complete identification through the “banking system or licensed intermediaries.”
The implementation of the concept will ensure the creation of the necessary regulatory framework, will bring the digital currency industry out of the shadows and create the possibility of legal business activities.Excerpt from the Russian government’s announcement.
Additionally, any user making a Bitcoin or cryptocurrency transaction worth more than 600,000 Rubles (approx. $8,030) would need to declare it. Otherwise, the government would deem such transactions as a criminal offense.
The Russian government would also penalize users who accept crypto payments outside the legal regulations.
Also Read: Bitcoin for Truckers: How a Canadian union, banned by GoFundMe, is using crypto to fight oppression.
The Russian government and the central bank have been locking horns regarding cryptocurrencies’ way forward. The Bank of Russia called for a ban on cryptocurrencies in Jan, citing cryptocurrency volatility and use in illegal activities.
However, Russia’s Finance Ministry opposed the central bank’s report, stating that the government should regulate rather than ban cryptocurrencies.
Bitcoin Prices Hold Above $43K-Support
The likelihood of Russia adopting cryptocurrencies failed to rile Bitcoin prices. Although BTC is falling on Feb 9, Bitcoin holds above support near $43,000.
BTC opened the day at $44,118 before moving upwards to reach an intraday high of $44,357. Later during the day, Bitcoin prices fell before slowly moving upwards.
Moreover, the wick at the bottom of the day’s candle indicates bulls aggressively moved in to buy BTC’s dip from its recent multi-week high. At present, Bitcoin has immediate resistance near the $44,500 price level.
Once Bitcoin charts another upward movement, BTC could target resistance near $46,400. Furthermore, a sustained buying sentiment could push prices to challenge resistance near $48,000.
Meanwhile, the relative strength index for Bitcoin is currently neutral, with a value of 62.34 on the daily charts.
Conversely, Bitcoin has support from its 50-day Moving Average near $42,500. In addition, BTC’s 26-day exponential MA line provides support near the $40,850 price level. However, the $42,500 support level is key for Bitcoin to maintain its uptrend.