Russian Crypto Mining Law Has Now Been Approved by President Vladimir Putin

Key Points:

• Russian crypto mining law has now been approved by President Vladimir Putin.
• Only registered entities and entrepreneurs can mine, while individuals within energy limits can mine without registration.
• The law takes effect in ten days, with full implementation by September 1.

Russian President Vladimir Putin has signed a law formally legalizing crypto mining in Russia.

Read more: Russian Crypto Payments Now Approved Amid Challenges of Sanctions

Russian Crypto Mining Was Legalized

This law introduces key concepts on digital currency mining, mining pools, and infrastructure operators. It clarifies that mining is part of turnover but not issuance in digital currency.

According to the new law, only those who can mine cryptocurrencies are registered Russian legal entities and individual entrepreneurs. Nevertheless, individuals who remain within the limits set by the government in regard to energy consumption can mine without registration.

The Russian crypto mining law also allows the trading of foreign digital financial assets on Russian blockchain platforms. Moreover, the Bank of Russia is entrusted with powers to limit or totally prohibit those issues of digital assets that may create threats to financial stability.

Putin has recently pointed out the strategic significance of digital currencies in an economic meeting, stressing that Russia has to urgently develop legal frameworks and infrastructure to support digital assets. The law will be effective ten days after the day of its official publication, with some provisions starting later.

Russian Crypto Mining Law Comes into Force Soon

The Russian crypto mining bill, along with related regulations, was passed last week by the State Duma in an attempt to ease cross-border payments using cryptocurrency under the watch of central banks. It forms part of a broader initiative to test digital currencies amid ongoing international sanctions and economic pressures related to Russia’s conflict with Ukraine.

Anatoly Aksakov, chairman of the Duma committee on the financial market, said the new law should be enacted by September 1. Central banks will also get the right to make cross-border settlements and transactions in private digital currencies, thus making Russia another giant in the world’s digital economy.