Poutine Signs Legalization of Crypto Mining in Russia

After many years of deliberations, Russia has finally taken the plunge. President Putin has signed a historic law legalizing Bitcoin mining as well as other cryptocurrencies in the country. A decision that could have a major impact on the adoption of digital assets.

Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia:https://t.co/TwdrHQfsZB pic.twitter.com/2kNwW0bZ1W

— TASS (@tassagency_en) August 8, 2024

Legalization of Crypto Mining: A New Era for Russia

With the signing of this law, Russia formalizes the mining of crypto assets (including Bitcoin) on its territory. However, the country reserves this right for Russian legal entities and individual entrepreneurs registered in the registry. This legislative framework also defines new concepts such as mining pool and digital currency extraction.

But that’s not all! Individuals respecting an energy consumption limit set by the government will also be able to participate in crypto mining, without prior registration. This legislation offers Russia a competitive edge on the international crypto scene. Even better, it can now compete with established regions like the United States in terms of hashrate.

A Favorable Economic Context for the Adoption of Bitcoin and Other Crypto Assets in Russia

The invasion of Ukraine by Russia and the resulting Western economic sanctions have heavily affected the Russian economy. In this context, Bitcoin and other cryptocurrencies have emerged as viable alternatives to circumvent these sanctions and maintain some economic stability.

This law reinforces this dynamic, allowing Russia to:

• diversify its resources,
• explore digital assets as a lever for economic growth.

Future Perspectives: Towards an Expansion of the Crypto Industry in Russia?

The legalization of crypto mining could pave the way for new financial products, particularly crypto ETFs. Several countries have recently followed the US in launching their own exchange-traded funds. Such is the case of Brazil with its Solana ETF.

Russia could follow this trend, thereby expanding its crypto industry and attracting more investments. The country could thus become a key player in the global cryptocurrency market.

In any case, this legislative evolution could have profound repercussions on the Russian economy and on the global cryptocurrency market.