Cryptocurrency mining in Russia has been officially legalized, marking a significant change in the country’s approach to digital assets, RT reported. The new law, signed by President Vladimir Putin, introduces a comprehensive legal framework regulating cryptocurrency mining and defines the rights and obligations of those involved in the industry.

Russia recognizes crypto mining

The law, published on Russia’s official legal information portal, clarifies the previously unregulated cryptocurrency mining sector. By legally recognizing cryptocurrency mining as a legitimate activity, the Russian government has included it as part of its broader economic turnover rather than just a way to issue digital currency.

Under the new legislation, only Russian legal entities and individual entrepreneurs registered with the government are allowed to engage in cryptocurrency mining. However, individual miners are allowed to operate without registration, provided that their energy consumption remains within the limits set by the government.

This provision allows small-scale mining companies to continue their operations without formal registration, while larger companies will be subject to stricter controls.

2022: The Russian central bank proposed to #Bitcoin and cryptomining.2024: Putin signs law legalizing Bitcoin and cryptomining in Russia 🇷🇺 photo.twitter.com/Q2lPrUaU5W

— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024

The law legalizes mining and allows trading of foreign digital financial assets on Russian blockchain platforms. However, it comes with some restrictions: the Bank of Russia retains the power to ban certain assets if they are deemed a threat to the country’s financial stability.

Trade and regulatory supervision

The move underscores the government’s cautious approach to digital assets, balancing the need to promote innovation with the need to protect the financial system.

The legislation also imposes strict controls on the advertising and promotion of cryptocurrencies. It prohibits the offering of digital assets to an unlimited number of people, a measure likely aimed at preventing the widespread promotion of potentially risky investments.

Additionally, the law provides the ability to ban cryptocurrency mining in specific regions or territories, giving the government more flexibility to manage the sector based on local circumstances.

President Putin has stressed the importance of regulating cryptocurrencies and digital assets as a promising area for economic development. At a recent government meeting, he emphasized the need for Russia to “seize the moment” and establish a robust legal framework to support the growth of digital assets within the country and in international trade.

This article was written by Jared Kirui at www.financemagnates.com.