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Russian President Vladimir Putin has signed a new law that improves regulations for crypto mining, a major step in Russia’s efforts to capitalize on the digital asset economy.

The law, reported by Russian news agency TASS, builds on recent legislation passed by Russia’s lower house of the Federal Assembly, known as the State Duma. It further defines and regulates core concepts including digital currency mining, mining pools and mining infrastructure operators.

According to the new regulations, only Russian legal entities and individual entrepreneurs registered with the government have the right to conduct large-scale crypto mining activities. However, individuals who do not exceed the energy consumption limits set by the Russian government can mine digital currency without registration.

President Putin recently stressed the need to quickly create a legal framework and regulations for cryptocurrencies, develop infrastructure and create conditions for the circulation of digital assets. This law seems to be a direct response to that call, and positions Russia to potentially become a major player in the global crypto market.

The Bank of Russia has been given the authority to ban individual crypto issuances if it identifies a threat to the country’s financial stability. The law also allows foreign digital financial assets to be traded on Russian blockchain platforms, potentially expanding the country’s role in international crypto transactions.

This legislative move follows the signing of the Digital Ruble Act last year, which allowed Russia’s central bank to issue its own digital currency. Together, these actions suggest a comprehensive strategy by the Russian government to engage with and regulate various forms of digital currency.

The law is expected to come into effect ten days after official publication, but some provisions may have different implementation dates.

As countries around the world struggle to regulate the rapidly evolving crypto sector, Russia’s approach to balancing innovation with financial stability is being closely watched by international observers and market participants.

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