Russian President Vladimir Putin has officially signed into law the legalization of cryptocurrency mining in Russia, resulting in a significant surge in Bitcoin prices, approaching the $60,000 mark.
The Russian news agency TASS reported on this recent legislative development, detailing that the new law introduces key concepts including virtual currency mining, mining pools, and operators of mining infrastructure. This legislation marks a pivotal shift in how Russia views mining activities, classifying them as legitimate business operations rather than merely the creation of digital currency.
### Guidelines for Cryptocurrency Mining in Russia
The new law establishes specific criteria for who is permitted to engage in cryptocurrency mining. Participation is limited to registered Russian legal entities and individual entrepreneurs. However, individual miners can bypass registration if they adhere to the government’s energy consumption limits.
Furthermore, the legislation allows for the trading of foreign digital financial assets on Russian cryptocurrency exchanges. The Bank of Russia retains the power to block certain listings if they are deemed a threat to the nation’s financial stability.
In a prior meeting addressing economic matters, Putin conveyed his optimism about the potential of virtual currencies. He emphasized the urgency for Russia to create a legal framework, enhance infrastructure, and foster an environment that supports the circulation of crypto assets, recognizing it as a promising sector for economic expansion.
The law is set to take effect ten days following its official announcement.
### Bitcoin’s Reaction: Approaching $60K
The news of Russia’s endorsement of cryptocurrency mining has catalyzed a remarkable reaction in the crypto market, particularly with Bitcoin, which has surged approximately 6% within hours, pushing it closer to the $60,000 threshold. As of this report, Bitcoin is trading around $59,600.
Bitcoin price chart | CoinMarketCap
### Russia’s Initiative for Crypto Trading
This development arrives just two weeks after Russian lawmakers approved a bill that allows businesses to engage in cryptocurrency transactions for international trade. Analysts view this move as a strategy to bypass Western sanctions imposed on Russia in response to its invasion of Ukraine.
This law is set to come into effect in September, and according to Elvira Nabiullina, the Governor of the Russian Central Bank, the first cryptocurrency transactions are anticipated to take place before the year concludes.
Russia has been facing significant challenges with international payments involving major trading partners, including China and the United Arab Emirates. This delay is primarily due to heightened caution among banks in these nations as a result of pressure from Western regulators regarding their dealings with Russia.
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