Russian President Vladimir Putin has officially signed into law the legalization of cryptocurrency mining within the country, leading to a significant surge in Bitcoin’s value, which is now edging closer to $60,000. This development was reported by the Russian news agency TASS, which detailed the new regulations in a recent article. The legislation introduces several important concepts, such as virtual currency mining, mining pools, and operators of mining infrastructure.
The new law categorizes mining activities as legitimate business operations rather than merely the production of digital currency.
### Regulations for Cryptocurrency Mining in Russia
The legislation specifies who is permitted to engage in cryptocurrency mining. Only Russian legal entities and individual entrepreneurs registered with the government are eligible to participate. However, individual miners can bypass registration if they adhere to government-set energy consumption limits.
Furthermore, the report indicates that foreign digital financial assets will be permitted for trading on Russian cryptocurrency platforms. Nonetheless, the Bank of Russia reserves the right to prohibit the listing of specific assets if they pose a risk to the nation’s financial stability.
In a prior discussion with government officials regarding economic matters, Putin expressed optimism about the potential of virtual currencies. He emphasized the urgency for Russia to establish a legal framework, improve infrastructure, and foster an environment that supports the circulation of crypto assets, recognizing this sector as a promising avenue for economic advancement.
The new law is set to take effect ten days after its official announcement.
### Bitcoin’s Response: Approaching $60K
The news regarding Russia’s endorsement of crypto mining has prompted a notable reaction in the cryptocurrency market, with Bitcoin advancing toward the $60,000 mark after experiencing a 6% increase just hours earlier. Other cryptocurrencies have followed suit, with Bitcoin currently valued at approximately $59,600.
Bitcoin price chart | CoinMarketCap
### Russia’s Legislation on Crypto Trading
This recent decision comes shortly after Russian legislators passed a bill allowing businesses to use cryptocurrencies for international trade. Analysts view this as a strategy to navigate around Western sanctions that have been imposed on Russia following its military actions in Ukraine.
The new law is scheduled to take effect in September, and according to Elvira Nabiullina, Governor of the Russian Central Bank, initial cryptocurrency transactions are anticipated to start before the year concludes.
Russia has faced considerable delays in international payments with key trading partners such as China and the United Arab Emirates. This situation has arisen primarily because banks in these nations, under pressure from Western regulators, have become increasingly cautious in their engagements with Russia.
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