After a long and cold "legal winter", Russian Bitcoin miners finally welcomed spring - but not the romantic spring with cherry blossoms in full bloom as you imagine, but the law signed by President Putin to legalize cryptocurrency mining. This move gave a shot of adrenaline to Russian Bitcoin miners, allowing them to not only mine openly, but also stand in the position of the world's second largest mining country and announce to the world: "We are here!"
Legalization of mining: registration is king
Don’t rush to move to Siberia to buy a mining machine. Imagine the cool scene of operating a Bitcoin mining machine in the snow. If you want to mine in Russia, you must first find yourself a "legal identity." According to the new law, only registered Russian legal entities and individual entrepreneurs have the right to legally mine. This means that if you are a self-employed person, don’t rush to shovel snow. Go to the government to register yourself and become an "official certified miner" before you can do it.
For those savvy investors, this requirement is actually a bit "against the sky". After all, becoming a legal business doesn't sound as easy as playing games at home. Registering a company, paying taxes, and a lot of paperwork - it's a headache just to think about it. But this provides miners with an opportunity to "officially announce" their identity, allowing them to walk more steadily on the road of legal mining.
Small-scale mining: a new way for family sideline businesses?
Of course, if you just want to do some side business at home, the government has also left you a way out. If you don't use much electricity, that is, you don't exceed the energy consumption limit set by the government, you can secretly do some small-scale mining activities at home. In this case, you don't need to queue up to register with the government. The government seems to be implying: "As long as you don't do it on a large scale, we will turn a blind eye and wish you good luck."
This is like giving home miners a reassurance: as long as you don't set off your neighbor's electric meter and don't install a mining farm at home, you can mine your Bitcoin in your basement or bedroom. This will undoubtedly attract a large number of Russian people to turn mining into their "home handicraft industry". After all, who doesn't want to earn a little more money to pay for heating on winter nights?
Russia’s low electricity prices: a paradise for miners
Why can Russia take the second place in the global mining map? The secret lies in its low electricity prices. The electricity prices are as low as the temperature in Siberia, which makes Russia a dream place for miners around the world. Last year, Russia's mining output reached $3.5 billion in Bitcoin, which is still far behind the US's $9.5 billion, but it is also considerable. Russian miners are grinning from ear to ear, after all, the electricity bill is cheap and they earn more.
The BRICS’ new adventure: the ambition to de-dollarize
Russia's legalization of mining is not just to make domestic miners happy. This move is part of the digital currency strategy of the BRICS countries (Brazil, Russia, India, China, and South Africa). They are considering how to use blockchain technology to create a new currency to get rid of dependence on the US dollar. If this strategy succeeds, it will not only bring spring to miners, but also reshuffle the entire international trade and financial system.
Russia's new law is clearly paving the way for this plan - by promoting the development of blockchain and cryptocurrency technology, the BRICS countries have demonstrated their adaptability and ambition for the future of the digital economy. This is a win-win strategy both economically and politically: on the one hand, they can take the lead in the field of digital currency, and on the other hand, they can also use this technology to weaken the dominance of the US dollar in global trade.
A new option for foreign trade: cryptocurrency payments on the way
When it comes to international trade, Russia is not only interested in mining. At the end of July this year, Russia passed a law allowing the use of cryptocurrency payments in international trade. This is obviously an adjustment made in response to Western sanctions, but it also opens a new path for trade between Russia and BRICS countries. Imagine buying and selling oil and gas with Bitcoin. Isn't this cooler than traditional US dollar transactions? And who knows if there will be any hidden economic weapons behind this?
Russian mining, unlimited possibilities in the future
In general, Putin's "mining amnesty" not only allows Russian miners to find a new way out, but also allows Bitcoin investors to see unlimited possibilities. Although you may not plan to move to Siberia to mine, Russia's new policy will undoubtedly have a profound impact on the global cryptocurrency market. Low electricity prices, stable policies, and an open market have made Russia the focus of global miners.
In the future, as the BRICS countries explore the field of digital currency, the global cryptocurrency market may usher in a new change. And all of this may start with the law signed by Putin - who knows? Maybe the next time you mine in Russia, you are not only earning Bitcoin, but also participating in a revolution in the global financial system.