- Russia legalizes cryptocurrency mining, recognizing it as a crucial part of its digital economy.
- New Russian law allows only registered entities to mine, with strict energy limits for individuals. .
- Russia’s crypto push includes trading foreign digital assets on local blockchain platforms.
Russia took a significant step in crypto regulation; in the mining sector. President Vladimir Putin has signed legislation that legalizes cryptocurrency mining in Russia. The new laws, passed by the State Duma, will be effective November 1, 2024.
The new law introduces several key concepts related to cryptocurrency mining. These include digital currency mining, mining pools, and mining infrastructure operators. Only Russian legal entities and registered individual entrepreneurs will be allowed to mine. However, individual miners can still participate without registration if their energy consumption stays within government limits. This creates a clear framework for who can engage in mining activities in Russia.
In addition to mining, the law allows trading foreign digital financial assets on Russian blockchain platforms. This move is seen as an effort to further integrate cryptocurrency into the Russian economy. The Bank of Russia retains the authority to ban certain digital assets if they pose a threat to financial stability. This ensures that while the country embraces cryptocurrency, there are safeguards in place to protect its financial system.
President Putin emphasized the importance of seizing the moment to establish a legal framework for digital currencies. He believes this will contribute to Russia’s economic development. The timing is crucial as other countries are also advancing their digital currency regulations. By acting now, Russia aims to strengthen its position in the global crypto market.
This legal development coincides with a broader trend of increasing nation-level interest in Bitcoin mining. Data shows that Chinese mining pools currently control 57% of the global Bitcoin hash rate, while the United States holds 35%. Russia’s entry into the market could shift the global Bitcoin mining landscape, especially with the country’s focus on enhancing its mining infrastructure. This could lead to more diversified miner politics and a stronger Bitcoin network overall.
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