Key Takeaways
- Putin has signed a law legalizing Bitcoin mining in Russia.
- Only registered Russian entities and entrepreneurs can mine Bitcoin.
- The Bank of Russia can ban certain digital financial asset placements.
Russian President Vladimir Putin has signed a new law legalizing Bitcoin mining in Russia, introducing several new concepts and regulations in the process.
The law now recognizes digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals who organize mining pool activities. Crucially, mining is classified as a component of turnover, rather than the issuance of digital currency.
Forced to register
Under this law, only Russian legal entities and individual entrepreneurs included in an official register will have the right to mine. However, individuals who do not exceed government-set energy consumption limits can mine digital currency without being registered.
The legislation also allows for the trading of foreign digital financial assets on Russian blockchain platforms. The Bank of Russia is granted the authority to ban the placement of certain issues if they pose a threat to the country’s financial stability.
Earlier discussions between Putin and the government highlighted the importance of Bitcoin as a promising economic area. Putin emphasized the need for Russia to quickly establish the legal framework, develop infrastructure, and create conditions for the circulation of digital assets.
This law will take effect ten days after its official publication, except for provisions with different specified effective dates.
