Russia Legalizes Cryptocurrency Mining with New Regulations
Vladimir Putin has enacted new legislation legalizing cryptocurrency mining in Russia.
Set to be implemented this November, the law marks a significant step in integrating Russia into the digital asset economy while also putting measures in place to regulate mining activities and prevent illicit practices.
Under the new rules, only registered entities and individuals are authorized to mine cryptocurrencies, though small-scale miners can operate without formal registration if they adhere to specific energy consumption thresholds. This dual approach aims to support both large and small players in the mining sector while ensuring regulatory compliance.
The legislation introduces new terms like “mining pool” and “mining infrastructure operator,” and mandates that miners disclose their earnings to a designated government body for greater transparency. Additionally, the Russian Central Bank will oversee cryptocurrency transactions to safeguard financial stability.
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Putin’s administration views this legislation as essential for Russia’s digital future, emphasizing the transformative potential of cryptocurrencies in various sectors, including commerce and international trade. The government aims to build a supportive framework that encourages innovation while maintaining regulatory oversight.
Despite its progressive stance, the law imposes strict limitations on how mined cryptocurrencies can be used domestically, aiming to curb money laundering and other illegal activities. It also permits the exchange of foreign digital assets within Russian blockchain systems, but the Central Bank retains the authority to block transactions that could threaten financial stability. This regulatory approach seeks to balance fostering innovation with maintaining control over the sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
