It’s a win for crypto in Russia. The country has officially legalized Bitcoin and crypto mining. On Thursday, Russia’s president Vladimir Putin signed a law legalizing the crypto mining process for specified people.
The Russian Parliament’s lower body, the State Duma, has passed legislation to regulate cryptocurrencies in the country. The signed law incorporates new terminology such as digital currency mining, mining pools, mining infrastructure operators, address identifiers, and the person who organizes mining pool activities. Mining is acknowledged as a component of turnover, not the creation of digital currency.
Only Russian legal companies and individual entrepreneurs included in a register will be able to mine digital currencies. However, it also legalizes mining for anybody who does not exceed the government’s proposed energy consumption limits. Additionally, the law allows foreign digital financial assets to be exchanged on Russian blockchain platforms. However, the Bank of Russia retains the right to ban the placement of specific assets that are deemed a threat to the country’s financial stability.
This is not the first time Russia has approved a pro-crypto bill this year. In late July, the country took steps to allow digital currency payments in international trade, bypassing Western sanctions. Following this decision, El Salvador plans to expand trade with Russia. According to reports, during a recent government meeting, President Putin underlined the necessity for Russia to “seize the moment” in developing a legal framework for digital currencies.
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