Summary
- Russian President Vladimir Putin signed a law legalizing crypto mining.
- Russian legal entities and individual entrepreneurs included in a register will have mining rights.
According to the latest reports coming from the Tass Russian News agency, Russian President Vladimir Putin has just signed a law legalizing crypto mining in Russia.
The signed law introduces new concepts, including the following, according to official reports:
- Digital currency mining
- Mining pool
- Mining infrastructure operator
- Address identifier
- Individual organizing mining pool activities
According to the notes, mining itself is recognized as a component of turnover, not the issuance of digital currency.
Who Can Mine Crypto
Official reports reveal that only Russian legal entities and individual entrepreneurs included in a register will have the right to mine. Also, individuals who do not exceed the energy consumption limits set by the Russian government will have the right to mine digital currencies without being included in the register.
Documents note that foreign digital financial assets can be traded on Russian blockchain platforms and the Bank of Russia will have the right to ban the placement of individual issues if it finds a threat to Russia’s financial stability.
It has been also reported that Putin discussed the introduction and use of crypto with the government at a meeting regarding economic issues. He said that this is a promising economic area, highlighting that it’s important to seize the moment.
According to Putin, it is important to take the following steps:
- Create the legal framework and regulation
- Develop infrastructure
- Create conditions for the circulation of digital assets
According to official notes, the law will enter into force 10 days after the date of its official publication, except for provisions for which a different date of entry into force could be established.
Bitcoin FOMO Is Heating Up
Founder and CEO of CryptoQuant, Ki Young Ju, addressed the move via a new post on X, saying that Russia seems to be acting to keep up with the US. He said that nation-level Bitcoin FOMO is heating up.
He also wrote that Russia’s entry into the crypto industry will boost the hashrate, strengthen network fundamentals and diversify miner politics.
According to him, currently, Chinese mining pools control 57% of the Bitcoin hash rate and the US controls 35%.
Regarding Bitcoin’s price at the moment, BTC is trading above $59,000, up by over 6% today.
Also, it’s worth noting that Bitcoin miner difficulty hit a new ATH recently, meaning more security for the network and increased competition.