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Russia Legalizes Bitcoin Mining

Published at: August 12, 2024

Russia Legalizes Bitcoin Mining with New Laws Signed by President Putin


Russia Legalises Bitcoin Mining


According to recent reports, Russian President Vladimir Putin legalized Bitcoin and digital asset mining by signing new laws last Monday. Those laws establish a national register defining who is entitled to mine Bitcoin in Russia.

Zero Tax Owed for Low-Energy Miners


A new law by Putin exempts people from using low-energy mining eqauipment. As a result, citizens operating below the government's electricity cap are now permitted to mine Bitcoin legally. It thus also legitimises crucial components of the network, including mining pools and address identifiers, thereby authorising trading in foreign virtual currencies on Russian blockchains.

Role of Bank of Russia


Despite such legalization, the Bank of Russia retains the right to prohibit those assets if they represent a danger to financial stability in the country.

Legislative Process and Timeline


Putin signed these crypto laws last month after two frameworks were rubber-stamped by the State Duma, Russia's lower house of parliament. The law legalizing crypto mining in Russia will be effective November 1 this year.

Russia's change of heart towards digital assets


Reports indicate that Putin signed this bill on Thursday, August 8, amid a broader shift in Russia's approach to digital assets. Another law letting Russia's central bank consider cross-border cryptocurrency settlements will take effect on September 1. Reports have it that El Salvador is now searching for Russia's help amid possible crypto trade ties.

Global Shift to Bitcoin Adoption


Russia's move to legalize Bitcoin mining is part of a global trend towards the adoption of Bitcoin. More and more countries around the world are realizing the potential of decentralized digital currencies and blockchains.

El Salvador is leading the Charge in Bitcoin Adoption


In the nation of El Salvador, under President Nayib Bukele, policies are enacted that promote innovation in Bitcoin, continue to stockpile reserves of cryptocurrency, adopt Bitcoin as legal tender, and encourage mining.

Close to Major Cryptocurrency Development in the U.S.


The United States is also close to witnessing major changes regarding how Bitcoin and cryptocurrencies are treated, but the extent might depend on the result of the November election.

Big Institutions Start to Adopt Bitcoin


Big institutions like BlackRock and Fidelity have launched regulated Bitcoin funds. The same case applies to Ethereum exchange-traded funds, which have been allowed to start operations by the US Securities and Exchange Commission.

Potential for Strategic Bitcoin Reserve


According to proponents, a strategic Bitcoin reserve—along the lines of what former President Donald Trump and Senator Cynthia Lummis of Wyoming have proposed—will accelerate Bitcoin adoption at an even faster rate.

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Author Details

Shubham Sahu
Content Writer

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