Russia’s Cryptocurrency Mining Legalization Approved By Putin

According to reports, Russia has now made it legal to mine Cryptocurrency. This is a major change in how the country deals with digital assets. President Vladimir Putin signed a new law that sets clear rules for mining cryptocurrency and explains what people in this field can and cannot do.

The law was put on Russia’s official legal website. It describes the rules for cryptocurrency mining that were unclear before.

The New Law Aims To Balance The Needs Of Small And Large Miners

The Russian government has accepted cryptocurrency mining as a real job. Now, it is part of the country’s economy, not just a way to make digital money.

Several countries like Canada and the US allow individuals to mine cryptocurrencies. However, other countries have made it illegal because it consumes too much energy, affects the environment, and people use it to commit crimes such as money laundering.

The new law says that only licensed organizations and registered individual workers in Russia can mine cryptocurrency. However, individual miners can still work even without being registered, as long as the miners don’t use too much energy.

This rule lets small miners keep working without having to register, while bigger mining operations will have to follow stricter rules.

The Central Bank Aims To Manage And Regulate The Use Of Digital Assets

The law lets people mine and trade foreign digital assets on Russian blockchain platforms. But there are limits: the Bank of Russia can ban some assets if they are seen as a threat to the country’s financial safety.

This step shows the government’s careful approach to digital assets, trying to balance supporting new ideas with keeping the financial system safe. The law also sets strict rules on advertising crypto. It stops offering digital assets to many people, probably to avoid promoting risky investments.

The law also lets the government ban cryptocurrency mining in certain areas, giving them the flexibility to control the industry based on local needs.

President Putin has highlighted the need to regulate cryptocurrencies and digital assets as an important part of economic growth. At a recent government meeting, he urged Russia to “seize the moment” and put strong laws in place to boost the growth of cryptocurrencies both within the country and in international trade.

Elvira Nabiullina, head of the Russian Central Bank, said on July 30 that using crypto for international payments could begin by the end of the year. The bank will closely watch how cryptocurrencies are used for these payments to make sure they follow the rules and work well.