Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in the country.
The law introduces regulations for the previously banned crypto-mining industry. This allows only legal entities and individuals who register with the Ministry of Digital Development to participate. As reported by the Tass, those who don’t register can still mine but must stay within certain energy limits.
Russian residents will now be permitted to trade digital currencies. Still, the Russian central bank retains the authority to ban any activity it considers a threat to the national currency.
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Russia Recently Allows Crypto Payments
The Russian legislature passed a bill that legalizes using digital currencies for international payments. This move aimed to counter international sanctions. The second bill still awaits Putin’s signature.
Cryptocurrencies have been illegal as a payment method in Russia since 2022, but Putin seems to be warming up to digital assets. He recently voiced support for using cryptocurrencies in international trade, signaling approval of the bills passed last week. Putin has also previously highlighted Russia’s advantages in cryptocurrency mining, particularly due to its energy surplus.
Cryptocurrency mining, which involves using computers to validate transactions on digital networks, can be highly profitable, particularly for blockchains like Bitcoin. The industry has grown significantly, with large-scale operations now typically housed in warehouses full of high-powered, energy-intensive machinery run by major companies.