Russia legalizes cryptocurrency mining

New law governing the sector has been signed by President Vladimir Putin

The President of Russia Vladimir Putin has signed a law that legalizes cryptocurrency mining in the country. A relevant document was published on Thursday on the official portal of legal information.

The new law introduced several key concepts, including digital currency mining, mining pools, and mining infrastructure operators, and defined the rights and liabilities of the crypto mining market’s participants.

Сryptocurrency mining will now be recognized as part of turnover rather than the issuance of digital currency.

The new legislation specifies that only Russian legal entities and individual entrepreneurs registered with the government will be allowed to engage in cryptocurrency mining. However, individual miners can participate without registration, provided their energy consumption remains within government-set limits.

Additionally, the law permits the trading of foreign digital financial assets on Russian blockchain platforms. However, the Bank of Russia retains the authority to ban the placement of certain assets if they are deemed a threat to the country’s financial stability.

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The legislation also includes a ban on advertising cryptocurrencies and on offering them to an unlimited number of people. In addition, the law provides for the possibility of banning mining in certain territories or in certain regions. An initially-planned ban on the organization of digital currency circulation in Russia was not included in the law.

The legislation will come into effect ten days after the date of its official publication, except for specific provisions that may have different implementation dates.

Putin raised the issue of regulating cryptocurrencies and digital assets at a government meeting on economic issues on July 17, noting it is a promising economic area. He said it is important for Russia “to seize the moment” to promptly create the legal framework and regulation, develop infrastructure and create conditions for the circulation of digital assets, both within the country and in relations with foreign partners.

The president also signed a law on Thursday allowing experimental foreign-trade settlements in cryptocurrency. Bank of Russia chief Elvira Nabiullina previously said the regulator would conduct the first cross-border crypto payments by the end of the current year.