Russia Legalizes Cryptocurrency Mining: What Putin’s New Law Means To The World
Russian President Vladimir Putin has officially signed a law that legalizes cryptocurrency mining in Russia, marking a significant shift in the country’s approach to digital currencies.
This new legislation, reported by Russian news agency TASS, introduces key concepts like digital currency mining, mining pools, and mining infrastructure operators.
In essence, Russia now recognizes mining activities as part of the turnover process rather than the issuance of digital currency.
Under this law, only Russian legal entities and individual entrepreneurs registered with the government will be permitted to engage in cryptocurrency mining.
However, individual miners are allowed to operate without registration as long as their energy consumption stays within government-established limits.
The law also enables the trading of foreign digital financial assets on Russian blockchain platforms, though the Bank of Russia retains the power to ban certain assets if they pose a risk to the country’s financial stability.
The move is part of Russia’s strategy to circumvent Western sanctions imposed following its invasion of Ukraine. The law is set to take effect in September, and Russian central bank Governor Elvira Nabiullina, a key supporter of the legislation, has indicated that the first cryptocurrency transactions are expected before the year’s end.
Russia has encountered significant delays in processing international payments with major trading partners such as China, India, and the United Arab Emirates, as banks in these countries, under pressure from Western regulators, have become increasingly cautious.
During a recent government meeting, President Putin stressed the importance of “seizing the moment” to establish a legal framework for digital currencies, highlighting their potential to contribute to Russia’s economic development. He emphasized the need for proper regulation and infrastructure to support this emerging sector.
The law will take effect ten days after its official publication, with some provisions possibly having different implementation dates.
