Vladimir Putin, the president of Russia, has formally signed a bill authorising cryptocurrency mining in the country.The law presents a number of important ideas, including mining pools, mining infrastructure operators, and digital currency mining, according to the Russian news agency TASS.
Mining activities are now recognized by Russia as part of turnover rather than the issuance of digital currency.
According to the new law, mining cryptocurrency will only be permitted by Russian legal entities and private business owners who have registered with the government. Individual miners, however, are not need to register in order to participate as long as their energy usage stays within the restrictions imposed by the government.
Furthermore, trade of foreign digital financial assets on Russian blockchain networks is allowed by law. But if some assets are thought to pose a risk to the nation’s financial stability, the Bank of Russia still has the power to forbid their placement.
President Putin reportedly stressed that Russia needed “to seize the moment” in creating a legal framework for virtual currencies during a recent government meeting, according to TASS. He emphasised the necessity for appropriate regulation and the potential for digital currencies to support Russia’s economic growth.
With the possible exception of a few clauses that may have a different implementation date, the law will come into force ten days after it is officially published.
