Key Points
- Russian President Vladimir Putin has signed a law legalizing cryptocurrency and Bitcoin mining.
- The law permits registered entities and businesses to mine cryptocurrencies, potentially aiding Russia amidst global sanctions.
Russian President Vladimir Putin has recently signed a law that legalizes mining of cryptocurrencies, including Bitcoin (BTC).
This law comes after months of discussions and negotiations among Russian lawmakers about the rules and regulatory frameworks for cryptocurrency mining.
Putin’s Crypto Move
Starting from November 2024, both individuals and businesses registered with the Russian Ministry of Digital Development will be permitted to engage in cryptocurrency mining. The law also allows unregistered individuals to mine cryptocurrencies, provided their energy consumption stays within a set limit.
President Putin, while addressing government members, highlighted the rising global prominence of digital currencies. He emphasized the importance of timely regulation and infrastructure development for digital assets.
Russia’s Crypto Future
The new law positions Russia as one of the few countries that legally permit crypto operations, including mining. Amidst the global crypto revolution and increasing acceptance, Russia aims to utilize cryptocurrencies for cross-border transactions.
However, some critics argue that the new laws could discourage individuals from mining operations. The Ministry of Digital Development will monitor miners’ adherence to rules and regulations, and miners will need to report the amount of crypto they mine and the addresses stored, leading to tight government control over mining companies.
Russia, being the most sanctioned country in the world, has faced massive financial sanctions, especially since the full invasion of Ukraine in 2022. These sanctions have affected individuals’ and businesses’ ability to conduct global transactions. The introduction of cryptocurrencies could potentially allow Russia to circumvent these sanctions through decentralized financial ecosystems, thus supporting its global trade and bolstering the currency.
