Russia has officially legalized Cryptocurrency mining, marking a significant shift in the country's approach to digital assets, RT reported. The new law, signed by President Vladimir Putin, introduces a comprehensive legal framework that regulates 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 the broader economic turnover rather than simply as a means of issuing digital currency.

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

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

2022: Russia's central bank proposed banning #Bitcoin and crypto mining.

2024: Putin signs law legalizing Bitcoin and crypto mining in Russia 🇷🇺 pic.twitter.com/Q2lPrUaU5W

— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024

The law legalizes mining and allows the trading of foreign digital financial assets on Russian blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term platforms. However, this 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 Oversight

This measure highlights the government's cautious approach to digital assets, balancing the promotion of innovation with the need to protect the financial system.

The legislation also imposes strict controls on the advertising and promotion of cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. It prohibits offering digital assets to an unlimited number of people, a move likely aimed at preventing the widespread promotion of potentially risky investments.

Additionally, the law allows for the possibility of banning cryptocurrency mining in specific regions or territories, providing the government with the flexibility to manage the industry based on local conditions.

President Putin has emphasized the importance of regulating cryptocurrencies and digital assets as a promising area for economic development. At a recent government meeting, he highlighted 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.