Russia has officially approved the activity of crypto mining, marking a key milestone in the governance of digital currencies. President Vladimir Putin has signed legislation that will come into force on November 1, 2024.
The new legislation introduces fundamental principles about crypto mining, encompassing the mining of digital currencies, the formation of mining pools, and the operation of mining infrastructure.
Only Russian entities that are recognized as legal entities and registered individual entrepreneurs will have permission to engage in mining activities. However, individual miners who are not registered can still participate as long as their energy usage does not exceed the restrictions set by the government.
The legislation additionally permits the exchange of foreign digital financial assets on Russian blockchain systems, which is regarded as a deliberate attempt to incorporate cryptocurrencies into the Russian economy.
The Bank of Russia has the power to prohibit specific digital assets if they jeopardize financial stability. President Putin highlighted the significance of taking advantage of the current opportunity to create a legal structure for digital currencies.
He believes that this will enhance Russia’s economic growth and bolster its position in the global cryptocurrency market. This legislative change aligns with a wider pattern of growing national-level attention towards Bitcoin mining, wherein China presently dominates 57% of the worldwide Bitcoin hash rate, while the United States possesses 35%.
