Russia has officially legalized Cryptocurrency mining, marking a significant shift in the country's approach to digital assets, RT reported. The new law, signed by President Vladimir Putin, introduces a comprehensive legal framework that regulates cryptocurrency mining and defines the rights and obligations of those involved in the industry.
Russia Recognizes Crypto Mining
The law, published on Russia's official legal information portal, clarifies the previously unregulated cryptocurrency mining sector. By legally recognizing cryptocurrency mining as a legitimate activity, the Russian government has included it as part of the broader economic turnover rather than simply as a means of issuing digital currency.
Under the new legislation, only Russian legal entities and individual entrepreneurs registered with the government are permitted to engage in cryptocurrency mining. However, individual miners are allowed to operate without registration, provided their energy consumption stays within limits set by the government.
This provision allows small-scale miners to continue their activities without formal registration, while larger operations will be subject to stricter controls.
2022: Russia's central bank proposed banning #Bitcoin and crypto mining.2024: Putin signs law legalizing Bitcoin and crypto mining in Russia ???????? pic.twitter.com/Q2lPrUaU5W
— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024
The law legalizes mining and allows the trading of foreign digital financial assets on Russianblockchain platforms. However, this comes with some restrictions: the Bank of Russia retains the power to ban certain assets if they are deemed a threat to the country's financial stability.
Trade and Regulatory Oversight
This measure highlights the government's cautious approach to digital assets, balancing the promotion of innovation with the need to protect the financial system.
The legislation also imposes strict controls on the advertising and promotion of cryptocurrencies. It prohibits offering digital assets to an unlimited number of people, a move likely aimed at preventing the widespread promotion of potentially risky investments.
Additionally, the law allows for the possibility of banning cryptocurrency mining in specific regions or territories, providing the government with the flexibility to manage the industry based on local conditions.
President Putin has emphasized the importance of regulating cryptocurrencies and digital assets as a promising area for economic development. At a recent government meeting, he highlighted the need for Russia to "seize the moment" and establish a robust legal framework to support the growth of digital assets within the country and in international trade.
This article was written by Jared Kirui at www.financemagnates.com.
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