Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in the country, effective November 1, 2024.
The legislation allows registered legal entities and individual entrepreneurs to engage in cryptocurrency mining, while unregistered individuals can mine if their energy consumption stays within government-set limits.
The new law defines key terms related to mining and prohibits public cryptocurrency offerings and advertising.
Miners will be required to report their digital currency gains to a government authorized body, which, along with the Central Bank, can impose restrictions to ensure financial stability.
In a meeting with government members in July, President Putin emphasized the importance of Russia setting up a legal framework and regulation for digital currencies, which he believes are becoming increasingly promising and reshaping trade, banking and international payments.
The law also simplifies the integration of Russian digital financial assets with foreign systems and allows for digital financial assets based abroad to be traded on Russian blockchain platforms.
However, the Central Bank will have the right to ban any placement of individual issues deemed a threat to financial stability