Summary:
Vladimir Putin signs law to regulate cryptocurrency mining in Russia, effective November 1, 2024.
Prohibition on mining for entities involved in electricity transmission.
Public promotion of cryptocurrencies is banned, reinforcing restrictions on financial transactions.
Domestic circulation of mined cryptocurrencies allowed under specific conditions.
Trading of foreign digital assets permitted on Russian blockchain platforms.
Russian President Vladimir Putin has officially signed legislation to regulate the cryptocurrency mining sector in Russia, effective from November 1, 2024. This landmark law aims to establish a structured framework for mining operations, imposing strict limitations on participation from entities involved in electricity transmission and banning the promotion of cryptocurrencies.
Key Features of the New Legislation
The law outlines the following significant measures:
- Prohibition on Mining and Electricity Activities: Legal entities and individual entrepreneurs involved in electricity management are explicitly banned from participating in cryptocurrency mining.
- Restriction on Promotion: Public promotion and advertising of cryptocurrencies are prohibited, reinforcing the ban on using digital currencies for financial transactions within Russia.
- Domestic Circulation Allowed: While promotion is restricted, the circulation of domestically mined cryptocurrencies will be permitted under specific conditions.
- Foreign Digital Assets Trading: The law allows for the trading of foreign digital financial assets on Russian blockchain platforms, with the Bank of Russia set to oversee further regulations.
A Shift from Legal Gray Zone
Prior to this legislation, cryptocurrency mining in Russia existed in a legal gray area. This new law not only clarifies the legal standing of mining activities but also aims to standardize operations within the industry. The government, in partnership with the Bank of Russia, will establish requirements for those involved in mining, and it holds the authority to prohibit mining in certain regions.
By categorizing mining as part of currency circulation, the law aligns with President Putin’s vision to create a comprehensive legal framework for digital currencies, recognizing their potential to bolster Russia’s economic growth.
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