President Vladimir Putin has enacted legislation to legalize cryptocurrency mining in Russia, as reported by TASS.
The new law brings several new terms into the legal framework, such as crypto mining, mining pool, mining infrastructure operator, address identifier, and mining pool organizer.
Under this legislation, the right to mine crypto is reserved for Russian legal entities and individual entrepreneurs listed in a specific registry. However, individuals who stay within the energy consumption limits set by the Russian authorities can mine without registration.
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The law also allows foreign digital financial assets to be traded on Russian blockchain platforms. However, the Bank of Russia can prohibit the issuance of certain digital assets if they threaten the country's financial stability.
The new legislation will come into effect in November 2024.
Putin has previously highlighted the economic potential of digital currencies and the need for Russia to capitalize on this opportunity, emphasizing the importance of establishing a legal framework and regulatory measures quickly.
Thus, Russia is making a decisive move to integrate crypto mining into its economy, aiming to leverage the potential of digital assets for economic growth.
The law comes a few months after BRICS—Brazil, Russia, India, China, South Africa, and more countries that joined the organization this year—announced plans to establish a BRICS-centric payment mechanism utilizing "state-of-the-art tools such as digital technologies and blockchain."
