- Vladimir Putin has signed a law to legalize crypto and BTC mining.
- The law allows entities and companies registered with the government to mine crypto.
Over the past three months, Russian lawmakers have been negotiating rules and regulatory frameworks for crypto mining.
Last month, the State Duma voted to approve the new law on crypto mining, making Russia a pro-crypto country.
After approval by parliament, Russian President Vladimir Putin signed a law legalizing crypto and Bitcoin [BTC] mining in the country.
Putin’s crypto checkmate
Russian President Vladimir Putin has finally signed a law legalizing cryptocurrency mining in the country from November 2024.
According to the law, individuals and legally accepted companies registered with the Russian Ministry of Digital Development are allowed to engage in crypto mining.
The now legalized laws also allow unregistered individuals to participate in crypto mining if their energy consumption is within the set limit.
While speaking to government members, Putin noted that digital currencies are showing promise worldwide and are reshaping trade, banking and international payments, saying:
“It is important for Russia not to miss this moment, to timely establish the legal framework and regulations, develop infrastructure and create conditions for the circulation of digital assets both within the country and in relations with foreign partners. ”
The signing of the president’s law makes Russia one of the countries that legally allow crypto operations such as mining.
Similarly, Russia hopes to use crypto for cross-border transactions amid the global crypto revolution, adoption and acceptability.
However, several critics have argued that the new laws are intended to discourage individuals from conducting mining activities.
The Ministry of Digital Development also gives the government the ability to monitor how miners adhere to the rules and establish regulations.
Because miners will report to the authorities how much crypto they mine and what addresses are stored, the government will have tight control over mining companies.
How crypto will help Russia amid sanctions
Source: Castellum
Over the past decade, Russia has become the most sanctioned country in the world. Since the full-scale invasion of Ukraine in 2022, its financial systems have faced massive sanctions.
In 2022, Russian financial systems were kicked out of Swift’s payment systems, impacting cross-border transactions.
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These global sanctions have impacted the ability of individuals and companies to conduct global transactions, especially when it comes to foreign currencies.
The introduction of crypto thus allows Russia to circumvent these sanctions through decentralized financial ecosystems, supporting global trade and boosting the currency.
Source: Castellum
