This landmark decision was announced on August 8th.
President Vladimir Putin signed a new law that paves the way for regulated crypto mining activities within the country.
Russia Legalizes Crypto Mining with New Law
The newly signed legislation marks a crucial step in Russia’s approach to digital currencies. It reflects the country’s growing interest in harnessing the potential of blockchain technology while maintaining regulatory oversight. According to Russian state media, the law introduces specific guidelines for who can participate in cryptocurrency mining.
Under the new regulations, only “legal entities and individual entrepreneurs included in a register” will be permitted to mine cryptocurrencies. This move aims to ensure that mining activities are conducted within a structured and accountable framework. These entities must follow regulatory standards to ensure a controlled cryptocurrency environment.
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In addition to the restrictions on registered entities, the law also opens the door for individual miners. However, individual miners will need to comply with predefined energy consumption limits set by the government. This provision balances the benefits of crypto mining with environmental and infrastructural concerns. By imposing limits on energy use, the legislation seeks to mitigate the impact of mining operations on the country’s power grid and resources.
The legalization of Bitcoin and crypto mining aligns with Russia’s broader strategy to integrate digital currencies into its financial system while ensuring proper oversight. This regulatory approach reflects a growing global trend where countries are moving from outright bans or restrictions to more nuanced regulatory frameworks that seek to leverage the benefits of blockchain technology.
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