- Vladimir Putin has signed a law to legalize crypto and BTC mining.
- The law allows entities and businesses registered with the government to mine crypto.
Over the past three months, Russian lawmakers have negotiated rules and regulatory frameworks for crypto mining.
Last month, the State Duma voted to approve the new crypto mining bill, which made Russia a pro-crypto country.
After the parliament’s approval, 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 starting November 2024.
According to the law, individuals and legally accepted businesses registered with the Russian Ministry of Digital Development will be allowed to engage in crypto mining.
The now-legalized laws also allow unregistered individuals to engage in crypto mining if their energy consumption is within the set limit.
While talking to government members, Putin noted that digital currencies are becoming promising globally and are reshaping trade, banking, and international payments, saying,
“It is important for Russia not to miss the moment, set up the legal framework and regulation in a timely manner, 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.
Equally, Russia hopes to use crypto for cross-border transactions amidst the global crypto revolution, adoption, and acceptability.
However, various critics have argued that the new laws are set to discourage individuals from conducting mining operations.
Also, the Ministry of Digital Development allows the government to monitor how miners adhere to the rules and set regulations.
Since miners will report to the authorities the amount of crypto they mine and the addresses stored, the government will have tight control over mining companies.
How crypto will help Russia amid sanctions
Source: Castellum
Over the last decade, Russia has become the most sanctioned in the world. Since the full invasion of Ukraine in 2022, its financial systems have faced massive sanctions.
In 2022, Russia’s financial systems were kicked out of Swift’s payment systems, which affected its cross-border transactions.
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These global sanctions have impacted individuals’ and businesses’ ability to conduct global transactions, especially involving foreign currencies.
Thus, the introduction of crypto allows Russia to evade these sanction through decentralized financial ecosystems, thus supporting its global trade and boosting the currency.
Source: Castellum
