- Russia officially legalizes cryptocurrency mining
- Vladimir Putin signed a law that defined key concepts regarding crypto mining
- Only registered Russian legal entities and entrepreneurs can engage in mining
- The Bank of Russia retains the authority to regulate digital financial assets
Russian President Vladimir Putin signed the law legalizing cryptocurrency mining in Russia and defining several fundamental concepts and criteria, such as digital currency mining, mining pools, and the role of mining infrastructure operators.
The law also distinguishes cryptocurrency mining as part of the circulation rather than the issuance of digital currency, establishing a clear regulatory framework for future crypto developments.
Legalization of Crypto Mining in Russia
The law signed by President Putin officially recognizes cryptocurrency mining in Russia, marks a key moment in the country’s approach to digital currencies, and expands its ability to be independent of reserve currency.
The law requires that only Russian legal entities and individual entrepreneurs officially registered with the government can engage in cryptocurrency mining.
However, individual miners are allowed to participate without the need to register, provided that their energy consumption remains within the limits set by the government.
Regulation of Digital Financial Assets and Market Stability
In addition to legalizing mining, the law allows trading foreign digital financial assets on Russian blockchain platforms. This opens up new opportunities for trading digital assets in Russia and potentially stimulates the domestic blockchain ecosystem.
However, the law gives the Bank of Russia the authority to prohibit the placement of certain digital financial assets if they threaten the country’s financial stability.
Conclusion
Legalizing cryptocurrency mining in Russia aligns with independent digital currency strategy and the foundation for future stable growth of the digital economy, which you can read about here.
However, with its powers to restrict certain assets, the Bank of Russia’s central role still does not reflect what the crypto community is set up to do.
As the law comes into force, it is crucial to monitor how these rules are implemented and how they affect the broader cryptocurrency market in Russia.
