President Vladimir Putin has signed a law that legalizes cryptocurrency mining in Russia, according to a report by TASS.
The new legislation introduces several key terms into the legal framework, including crypto mining, mining pool, mining infrastructure operator, address identifier, and mining pool organizer.
Under this law, the right to mine cryptocurrencies is restricted to Russian legal entities and individual entrepreneurs who are registered in a specific registry. However, individuals who stay within the energy consumption limits established by Russian authorities can engage in mining without the need for registration. The legislation also permits the trading of foreign digital financial assets on Russian blockchain platforms. The Bank of Russia retains the authority to prohibit the issuance of certain digital assets if they pose a threat to the country's financial stability.
The new law is set to take effect in November 2024. Putin has previously underscored the economic potential of digital currencies and the necessity for Russia to seize this opportunity by establishing a robust legal framework and regulatory measures.
With this move, Russia is positioning itself to integrate crypto mining into its economy, aiming to harness the potential of digital assets for economic growth.
This law follows the recent announcement by BRICS—a coalition that includes Brazil, Russia, India, China, South Africa, and new members joining this year—regarding plans to develop a BRICS-centric payment mechanism that incorporates advanced tools such as digital technologies and blockchain.
