Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in Russia, set to take effect in November 2024. This landmark legislation aims to regulate the growing cryptocurrency industry in the country and prevent its use for illegal purposes.Under the new law, Russian legal entities and individual entrepreneurs must register with the Ministry of Digital Development to engage in mining activities. Individuals can mine cryptocurrencies without registration, but must adhere to government-set energy consumption limits. The law also prohibits individuals with criminal records related to economic crimes, crimes against the state, or other serious offenses from participating in mining activities.The legislation includes measures to prevent money laundering and terrorist financing, requiring miners to provide information about their digital currency earnings to authorized bodies. Additionally, the law bans advertising cryptocurrencies to the general public and prohibits combining mining activities with electricity transmission, production, or sale.Putin emphasized the importance of regulating digital assets and cryptocurrencies for Russia’s economic development and international relations. During an economic meeting on July 17, he stressed the need to ‘not miss the moment’ in establishing regulations and infrastructure for digital asset circulation both domestically and internationally.According to industry experts, Russia is currently the world’s second-largest cryptocurrency mining country, with an estimated annual revenue of up to 50 billion rubles. The Russian market’s mining capacity is approximately 2.5 gigawatts, with 1.7 gigawatts attributed to industrial miners.This move marks a significant shift in Russia’s stance on cryptocurrencies, as the country’s Central Bank had previously called for a complete ban on cryptocurrencies in 2021. The legalization of mining is expected to create a new high-tech industry in the country, potentially increasing tax revenues and helping to overcome international sanctions.
Key points
- Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining, effective November 2024.
- The law requires registration for legal entities and entrepreneurs, while allowing individuals to mine within energy consumption limits.
- Measures are included to prevent money laundering and terrorist financing.
- Russia is currently the world’s second-largest cryptocurrency mining country, with potential for significant economic impact.
Contradictions👾While most sources agree on the general content of the law, there are slight discrepancies in the reported timeline.
Some sources state the law will take effect in November, while others specify November 2024.
