Putin Legalizes Cryptocurrency Mining in Russia, Introduces Strict Regulations and New Framework
Russian President Vladimir Putin has signed a law officially legalizing cryptocurrency mining in the country. The legislation introduces new concepts and regulatory requirements, including mandatory registration for entities involved in mining and specific guidelines for individuals. The law also allows the trading of foreign digital assets on Russian platforms while granting the Bank of Russia authority to block issuances that may threaten financial stability.
Because Bitcoin
August 8, 2024
According to a Tass report, Russian President Vladimir Putin has signed a law that legalizes cryptocurrency mining in Russia. The law introduces several new concepts, including digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals responsible for organizing mining pool activities. Mining is classified as part of the turnover process for digital currency, rather than its issuance.
Only Russian legal entities and individual entrepreneurs listed in a special register will have the right to mine cryptocurrency. However, individuals who adhere to government-set energy consumption limits can mine digital currency without needing to be registered.
In an earlier meeting on economic issues, Putin highlighted the potential of digital currencies and stressed the importance of swiftly establishing a legal framework to regulate this emerging sector. He emphasized that Russia must "seize the moment" to develop the necessary infrastructure and create favorable conditions for the circulation of digital assets.
The law also permits the trading of foreign digital financial assets on Russian blockchain platforms, granting the Bank of Russia the authority to block certain issuances if they pose a threat to the nation’s financial stability.
The law will come into effect ten days after its official publication, except for specific provisions with alternate start dates.
Resources: