Bitcoin mining just got a green signal in Russia. President Vladimir Putin has officially legalized cryptocurrency mining, putting into effect a law that has been a subject of legislative debate over the past three months.
Under these new guidelines, individuals and businesses that are officially registered with the government now possess the legally-sanctioned right to mine cryptocurrencies including Bitcoin [BTC]. After being passed in the State Duma last month, the bill was later given the official stamp of approval by Putin himself, marking Russia’s steadfast steps towards pro-crypto stances.
Come November 2024, crypto mining will be an officially recognized and legal industry in the country. Notably, the law also loosens up some restrictions, enabling even unregistered traders to mine cryptocurrencies, as long as their energy usage remains within the stipulated limits.
According to Putin, embracing digital currencies is crucial for Russia to keep pace with the global shift towards these promising financial technologies, that are fast transforming the landscapes of trade, banking, and international payments. His signature on the law makes Russia one of the select nations that officially permit crypto operations such as mining.
Furthermore, amidst a global surge in crypto acceptance and adoption, Russia seeks to leverage digital currencies for managing cross-border transactions. Despite the prospect of tighter governmental control over mining operations, the move has been greeted with enthusiasm. Critics, on the other hand, caution that the new laws might deter individual miners.
The implementation of this law appears to be a strategic response to the recent financial sanctions on Russia, which have greatly handicapped the nation’s ability to conduct global transactions. By incorporating decentralized financial ecosystems like crypto, Russia has found a way around these obstacles, thereby boosting its global trade advancements.