Russia legalizes crypto mining, allowing registered entities and unregistered individual miners with limits to mine crypto.
New law permits trading of foreign digital assets on Russian blockchain platforms under regulatory oversight.
Bank of Russia granted power to ban digital assets threatening financial stability.
Vladimir Putin, the President of Russia, signed legislation to legalize Crypto in Russia. This bill will allow registered Russian entrepreneurs to mine cryptocurrency.
This cryptocurrency mining rule also introduces Russia to the concept of mining pools, mining infrastructure, address identifiers, and pool masters. It establishes a legal framework that distinguishes mining as a part of economic turnover rather than a form of currency issuance.
https://twitter.com/martypartymusic/status/1821554898825306451 Regulatory Framework and Mining Rights
The law specifies that Russian legal entities and registered individual entrepreneurs can undertake cryptocurrency mining. Individual miners, however, are allowed to mine without registration, provided their energy consumption does not exceed specified governmental limits. This development is seen as a move to boost Russia’s technological and economic landscape by integrating digital currencies into its regulatory environment.
The legislation permits trading of foreign digital financial assets on Russian blockchain platforms. At the same time, the Bank of Russia retains the right to prohibit trading certain assets that are considered threats to national financial stability. These actions show a cautious but supportive attitude toward digital currencies, seeking to maximize their financial advantages while reducing possible hazards.
Oversight responsibilities will be divided among the Bank of Russia, the Ministry of Finance, and other relevant government bodies. Over the coming months, these entities are expected to refine the regulatory framework, setting precise requirements for the newly legalized mining sector. The law also addresses the concerns surrounding the mass advertising of cryptocurrencies by implementing a ban within Russia.
Russian Government and Crypto
Russia’s crypto legislation comes when the BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, actively explores alternatives to the US dollar for international trade. The group has considered creating a native digital currency to facilitate trade among member countries.
Russia's attempts to de-dollarize its economy have accelerated recently, especially due to increased geopolitical tensions and Western economic sanctions. The new cryptocurrency legislation could boost Russia's position within BRICS and on the world financial spot by providing an alternate way of international trade resolution.
According to TASS Russian News Agency, President Putin emphasized the importance of embracing the opportunity to create a strong legal framework for digital currencies. He emphasized the potential for digital currencies to help Russia's economic development. Legalizing cryptocurrency mining would boost Russia's economic autonomy and lessen its dependence on Western financial institutions.
The law comes into effect ten days after its official publication, and certain provisions have specific implementation timelines. This quick implementation demonstrates the Russian government's determination to capitalize on blockchain technology and digital currencies' economic possibilities.
The post Putin Signs Law to Allow Bitcoin and Cryptocurrency Mining in Russia appeared first on Crypto News Land.
