Putin Signs Law Legalizing Cryptocurrency Mining in Russia

 

Russian President, Vladimir Putin, on August 8 signed a law legalizing the mining of cryptocurrencies in the country. 

The law was published on the official portal of legal information and is set to come into effect within 10 days of its final approval. 

This legislation establishes a regulated framework for mining operations, limiting participation from entities associated with electricity and prohibiting the promotion of cryptocurrencies. 

It also allows the circulation of mined cryptocurrency domestically under specific conditions and permits the trading of foreign digital assets on Russian blockchain platforms.

According to the new law, only Russian legal entities and individual entrepreneurs who have completed registration with the authorities will be able to legally mine cryptocurrency. 

They will also be required to disclose information about the mined cryptocurrency, as well as identifiers of related transactions, to the government. 

The legalization of crypto mining in Russia is seen as a significant step towards the adoption of digital assets in the country. It also aligns with the government's efforts to regulate the cryptocurrency market and protect investors.

Detailed on Russia's official regulatory platform, the new law provides a structured approach to cryptocurrency mining, including definitions for key terms such as mining pools and infrastructure operators. 

This legislation seeks to standardize operations within the cryptocurrency mining industry.

The Russian government, in coordination with the Bank of Russia, will establish the requirements governing individuals and entities involved in cryptocurrency mining.

Additionally, the government holds the authority to prohibit mining activities in certain Russian regions. According to a translation by Interfax, the law states: “Legal entities and individual entrepreneurs are prohibited from combining the mining of digital currency with any activities dealing with the transmission of electric power energy or operational/dispatching management in the electric power industry, or any production or purchase/sale of power energy.”

Before this legislation, cryptocurrency mining was not explicitly illegal in Russia, but its legal standing was vague and unregulated. Those engaged in crypto mining in the country operated in a legal gray zone without clear government guidelines or protections.