Key Insights
- Putin signed a law legalizing cryptocurrency mining in Russia, effective from August 8, 2024.
- Only registered entities can mine, with exemptions for low-energy individual miners.
- The Bank of Russia can ban digital financial assets if financial stability is threatened.
Russian President Vladimir Putin signed a law on August 8, 2024, officially legalizing cryptocurrency mining in Russia. The law introduces new concepts such as digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals organizing mining pool activities.
Mining Rights and Regulations
Only Russian legal entities and registered individual entrepreneurs can mine cryptocurrencies. However, individuals with low-energy consumption mining supplies are exempt from registration. The law recognizes mining as part of turnover rather than digital currency issuance. The Bank of Russia has the authority to ban individual digital financial assets if they threaten financial stability.
The new law allows foreign digital financial assets to be traded on Russian blockchain platforms. This includes trading of Bitcoin and other virtual currencies. Russia aims to seize the moment to create a legal framework, develop infrastructure, and facilitate the circulation of digital assets.
Legislative Process and Implementation
The State Duma passed two frameworks supporting this law, which goes into effect ten days after its official publication. The law concerning the Bank of Russia’s authority over crypto-denominated cross-border payments will be effective from September 1, 2024.
This move by Russia highlights a global trend towards cryptocurrency adoption. Nations like El Salvador have implemented policies supporting Bitcoin innovation and mining. The U.S. is also moving towards broader cryptocurrency adoption, with financial giants like BlackRock and Fidelity offering regulated exposure to Bitcoin funds.
Over the past 24 hours, Bitcoin’s price has experienced a significant rise, reaching $59,628.87, marking an 8.09% increase. The chart illustrates a robust upward trend throughout the day, with the price starting at approximately $55,080. This rise is reflected in the market cap, which increased by 8.10% to reach $1.18 trillion.
The 24-hour trading volume shows a slight decline of 1.11%, totaling $41.15 billion. The volume-to-market cap ratio stands at 3.51%, indicating a healthy level of liquidity.
Personal Note From MEXC Team
Check out our MEXC trading page and find out what we have to offer! There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading! Learn about interoperability now!
Join MEXC and Start Trading Today!
