Russia Legalizes Cryptocurrency Mining in New Law Signed by Putin

Russia has officially legalized Cryptocurrency mining, marking a significant shift in the country’s approach to digital
assets, RT reported. The new law, signed by President Vladimir Putin, introduces a
comprehensive legal framework that regulates cryptocurrency mining and defines
the rights and obligations of those involved in the industry.

Russia Recognizes Crypto Mining

The law, published on Russia’s official legal
information portal, clarifies the previously unregulated cryptocurrency mining sector. By legally recognizing cryptocurrency mining as a legitimate activity, the Russian government has included it as part of the broader economic turnover rather than simply as a means of issuing digital currency.

Under the new legislation, only Russian legal entities
and individual entrepreneurs registered with the government are permitted to
engage in cryptocurrency mining. However, individual miners are allowed to
operate without registration, provided their energy consumption stays within
limits set by the government.

This provision allows small-scale miners to continue
their activities without formal registration, while larger
operations will be subject to stricter controls.

2022: Russia’s central bank proposed banning #Bitcoin and crypto mining.2024: Putin signs law legalizing Bitcoin and crypto mining in Russia 🇷🇺 pic.twitter.com/Q2lPrUaU5W

— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024

The law legalizes mining and allows the trading of foreign digital financial assets on Russian
blockchain platforms. However, this comes with some restrictions: the Bank of Russia retains the power to ban certain assets if they are deemed a threat to
the country’s financial stability.

Trade and Regulatory Oversight

This measure highlights the government’s cautious
approach to digital assets, balancing the promotion of innovation with the need
to protect the financial system.

The legislation also imposes strict controls on the
advertising and promotion of cryptocurrencies. It prohibits offering digital
assets to an unlimited number of people, a move likely aimed at preventing the
widespread promotion of potentially risky investments.

Additionally, the law allows for the possibility of
banning cryptocurrency mining in specific regions or territories, providing the
government with the flexibility to manage the industry based on local
conditions.

President Putin has emphasized the importance of
regulating cryptocurrencies and digital assets as a promising area for economic
development. At a recent government meeting, he highlighted the need for Russia
to “seize the moment” and establish a robust legal framework to
support the growth of digital assets within the country and in international
trade.

This article was written by Jared Kirui at www.financemagnates.com.
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