Thread by @ProfaneBenni

BREAKING: If reports are to be believed, #Russia is planning to recognise #cryptocurrencies as currencies. It's incredibly #bullish news.
I delved a little deeper. Here's what we know right now. Thread. 1/

The report circulating on #Twitter is sourced from the @kommersant newspaper.
According to #Wikipedia, Kommersant is a nationally distributed Russian paper with a daily circulation of 100000+ in 2013. It is devoted to covering politics and business. So it is legit. 2/

Here are the most important parts of the report. "The government and the Bank of Russia have agreed on a future regime for the circulation of cryptocurrencies in Russia: by February 18, they will prepare a draft law on the circulation of digital currencies in the Russian..." 3/

... Federation, in which cryptocurrencies are recognized as an analogue of currencies, and not digital financial assets (DFA)." 4/

"Their circulation in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries." 5/

"... fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment."
This implies that crypto will be a legal means of payment in Russia. And illegal acceptance will invite legal action. 6/

"... evasion of declaring transactions with cryptocurrency will become a criminal offense, and its use will become an aggravating circumstance in other offenses." 7/

"The possession of cryptocurrency in the jurisdiction of the Russian Federation and transactions with it are not prohibited - but only through the "organizer of the digital currency exchange system" (a bank with a universal license) or a p2p exchanger legalized in the ..." 8/

"... Russian Federation."
"So far, the most intriguing is the organization of the legalization of the existing undeclared cryptocurrency, which is not described in the concept." 9/

"The Ministry of Finance's estimate of the total amount of crypto assets in the Russian Federation has not changed - it is 12 million crypto wallets with assets worth 2 trillion rubles."
This is equivalent to around 26,711,184,000 USD. 10/

Previously, The Bank of Russia had expressed its disapproval of cryptocurrencies and called for an outright ban. However, Vladimir #Putin then went on record to outline Russia's advantages in #Bitcoin mining. 11/

Putin is the indisputable ruler of Russia. His opinion could have been expected to prevail. It seems like it did. #NATO and the #US have been mulling over sanctions on Russia over their militaristic overtures in #Ukraine. 12/

There were talks of plans to remove Russia from the SWIFT payment system. So Putin could be looking for a way to sidestep the dollar and the conventional payment system. What better than Bitcoin! 13/

Consider Russia's massive #oil and gas reserves, among other natural resources, and you have the perfect recipe for a Bitcoin mining powerhouse. The Kommersant report says that decisions are still to be made on the subject of mining. Let's wait and watch. 14/

Now we wait for further corroboration from other news sources about this exceedingly bullish news. Few would have actually expected a country as powerful as Russia to come onboard the Bitcoin wagon so early. Even though it makes all the sense in the world. 15/

Game theory is working. Russia may be going all in.
Your move, US. 16/

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#UPDATE: Russia Today reports that "Foreign crypto exchanges will be allowed to operate in #Russia provided they are licensed in the country that they are registered in and have a representative office in Russia..."

"Such platforms should be “technically integrated” with the banks that serve as organizers of the systems of digital exchange. Those registered in #tax havens will be disqualified from operating in the country altogether."
Thanks to @voidthatbinds for sharing this news with me.

UPDATE: The great #Bitcoin maximalist, Max Keiser's new tweet indicates at something big brewing in #Russia on the #mining front. Let's wait and watch.

https://twitter.com/maxkeiser/status/1491404448195055617?s=20&t=IE1L-ZYsU_u7kTrdU2Kw9A

UPDATE: @RT_com reports that "#Russia could collect up to 1 trillion rubles ($13 billion) per year by regulating and taxing #cryptocurrency transactions, analysts for the #government believe..."

ADDENDUM: This could also imply that crypto cannot be used as a means of payment. And that such use will invite fines. The description of cryptocurrencies as "analogue of currencies" will require further clarification from the Russian government. Let's wait and watch.