Two years after nearly banning Bitcoin and cryptocurrency mining, Russia has made a significant policy reversal. On August 8, Russian President Vladimir Putin officially signed new laws legalizing Bitcoin and digital asset mining, signaling a more open stance toward the leading cryptocurrency.
Under the new legislation, a national register will be established to determine who is authorized to mine Bitcoin in Russia. The law also includes provisions that exempt individuals with low-energy consumption mining rigs. Russian citizens operating within the government’s electricity cap are now legally allowed to mine Bitcoin.
In addition to legalizing Bitcoin mining, the law recognizes critical network infrastructure, such as mining pools and address identifiers, and permits the trading of foreign virtual currencies within Russian blockchains. However, the Bank of Russia retains the authority to ban individual assets if they are deemed to threaten financial stability.
Putin's endorsement of these crypto laws follows two frameworks passed by the State Duma in July. The lower house of Russia’s Federal Assembly proposed a green light for crypto mining starting November 1 of this year. The second law, also signed by Putin, authorizes Russia’s central bank to explore crypto-denominated cross-border payments, set to take effect on September 1.
This policy shift represents a significant turnaround for Russia, which had previously been resistant to digital assets. Reports also indicate that El Salvador, the first country to adopt Bitcoin as legal tender, has approached Russia to discuss crypto trade opportunities.
A Global Shift Toward Bitcoin Adoption
Russia’s embrace of Bitcoin reflects a broader global trend toward cryptocurrency adoption. Countries around the world are increasingly recognizing the potential of decentralized currencies and blockchain technology.
In El Salvador, President Nayib Bukele has implemented a comprehensive policy to promote Bitcoin innovation, accumulate cryptocurrency reserves, accept Bitcoin as legal tender, and encourage mining activity. The United States is also on the verge of a significant shift in its treatment of Bitcoin and cryptocurrencies, with the outcome potentially influenced by the upcoming November elections.
Major financial institutions like BlackRock and Fidelity have already begun offering regulated exposure to Bitcoin through spot BTC funds. Additionally, the U.S. Securities and Exchange Commission has approved Ethereum exchange-traded funds, further integrating cryptocurrencies into mainstream finance.
Proponents of cryptocurrency in the U.S., including former President Donald Trump and Wyoming Senator Cynthia Lummis, have advocated for the establishment of a strategic Bitcoin reserve, which they argue could accelerate adoption even further.
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