Vladimir Putin officially legalizes crypto mining in Russia

President Vladimir Putin just signed a law to legalize cryptocurrency mining in Russia. The law introduces several new concepts like mining pools, mining infrastructure operators, address identifiers, and the roles of those organizing mining activities. 

Instead of seeing mining as creating cryptocurrency, the law now sees it as part of the turnover. Only Russian legal entities and individual entrepreneurs who are on an official register will be allowed to mine.

Regular folks can still mine crypto as long as they stay within government-set energy consumption limits without needing to be on the register.

Russia sets new rules for foreign assets and financial stability

The new law also touches on foreign digital financial assets. These can now be traded on Russian blockchain platforms. 

The Bank of Russia will have the power to ban any individual issues if they are a threat to the country’s financial stability. Putin has talked about the potential of cryptocurrencies at a government meeting about economic issues before. 

He pointed out that this is a promising area and that it’s important for Russia to “seize the moment” to set up the right legal framework and infrastructure for crypto assets. Lawmakers said :

“The law will take effect ten days after it’s officially published unless specified otherwise for certain provisions.”

Crypto in international trade and sanctions

Russia is using cryptocurrencies more in international trade to dodge Western sanctions. A new law passed in July 2024 lets businesses use cryptocurrencies for international deals.

This allows companies hit by sanctions to keep trading when traditional methods don’t work. 

The government is busy setting up the needed infrastructure for these transactions. They’re also cautious about risks like money laundering and financial instability. 

The central bank and other financial bodies are stressing the need for a strong regulatory framework to keep things in check.

Headquarters of the Central Bank of Russian Federation in Moscow

Russia is also testing a digital ruble, a blockchain-based central bank digital currency. This is part of a larger plan to modernize the financial system and make it tougher against outside economic pressures.

And of course also to get away from the dollar permanently, in all trades.

Putin’s also teaming up with Iran, China, and Belarus to connect their digital currency systems. These partnerships are meant to make bilateral transactions smoother, further embedding the blockchain into Russia’s economic plans.