Russia legalizes crypto mining, Bitcoin surges by 6% to nearly $60,000

Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in Russia, a move that has sent the price of Bitcoin soaring toward $60,000. Russian news agency TASS captured information about the latest regulations. The report pointed out that the new bill introduced several key concepts, including virtual currency mining, mining pools and mining infrastructure operators.

According to reports, Russia now considers mining activities as a legitimate business activity, not just the issuance of digital currencies.

A Guide to Crypto Mining in Russia
The law also outlines specific guidelines for who can engage in cryptocurrency mining. Only Russian legal entities and individual business owners registered with the government can participate. However, individual miners are exempt from the registration requirement if their energy consumption remains within limits set by the government.

Additionally, the report emphasizes that foreign digital financial assets will be allowed to be traded on Russian crypto platforms. However, the Russian Central Bank will have the power to ban the listing of certain assets if it determines that they threaten Russia's financial stability.

During a meeting with the government on economic issues, Putin expressed enthusiasm for the potential of virtual currencies. He stressed that Russia must quickly act to establish a legal framework, develop infrastructure, and create an environment conducive to the circulation of crypto assets, recognizing that this is a promising area of economic growth.

According to reports, the law will come into effect ten days after the official publication date.

Bitcoin Reacts, Approaching $60,000
Notably, the news that Russia allowed crypto mining triggered a sharp rise in the crypto market. In particular, Bitcoin rose 6% in a few hours, approaching the $60,000 area. Other crypto assets also rose. At press time, the price of Bitcoin is around $59,600.

Bitcoin price chart | CoinMarketCap

Russia’s Cryptocurrency Trading Bill
Notably, this latest development comes just two weeks after the Russian legislature passed a bill allowing businesses to use cryptocurrencies in international trade. Observers believe this is an attempt to circumvent Western sanctions imposed on Russia following its invasion of Ukraine. The law will take effect in September. According to the head of Russia’s Central Bank, Elvira Nabiullina, the first cryptocurrency transaction is expected to take place before the end of the year.

Russia has been facing major delays in international payments with major trading partners such as China and the United Arab Emirates. This is mainly because banks in these countries have become increasingly cautious in their dealings with Russia under pressure from Western regulators.

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