The Russian government and the Central Bank of Russia have agreed on their approach to regulating cryptocurrencies after months of speculation about how the Russian government will handle digital currencies. The state bodies are now working on a draft law set to be launched on February 18th that will define crypto as an “analogue of currencies” rather than digital financial assets. Cryptocurrencies would function in the legal industry only if they have complete identification through the banking system or licensed intermediaries. Currently, Bitcoin transactions and possession of cryptocurrency in Russia are not prohibited, but transactions must be conducted through a digital currency exchange organizer (a bank) or a peer-to-peer exchange that is licensed. Moreover, cryptocurrency transactions of more than 600,000 rubles have to be declared.