On August 8, President Putin signed a bill legalizing cryptocurrency mining in Russia. This move reflects the country’s stance and efforts to make international payments more accessible.
According to TASS, cryptocurrency use has been officially legalized in Russia after President Vladimir Putin signed the law approving crypto mining activities.
Before this, Elvira Nabiullina, Governor of the Central Bank of Russia, also announced a strategy revealing plans to implement international payments using cryptocurrency this year.
The document specifies:
- Digital assets from foreign countries can be traded on Russian blockchain platforms, and the Central Bank of Russia will have the authority to ban the issuance of specific assets if they threaten Russia’s financial stability.
- Mining is recognized as a part of revenue generation, not the issuance of digital currency.
- The law introduces new concepts, including digital currency mining, mining pools, infrastructure operators, address identifiers, and individuals establishing mining pools.
However, the law also imposes certain restrictions:
- Only legal entities and registered individual entrepreneurs in Russia are permitted to engage in mining.
- Russian citizens can still register for cryptocurrency mining, provided they do not exceed regulated energy consumption limits.
The new law will take effect 10 days after its official publication, except for provisions with later effective dates as specified.
Russia is rushing to officially legalize cryptocurrency in response to the complex developments of the war in Ukraine, which has impacted the economy and put pressure on the national payment system. Once the law takes effect, cryptocurrency will officially be used similarly to other foreign currencies in Russia.
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