Russian President Vladimir Putin has enacted a law that legalises cryptocurrency mining within Russia.

This legislation introduces several new concepts:

• Digital Currency Mining: The process of generating digital currencies through computational work.
• Mining Pool: A collective of miners who pool their resources to enhance their mining success.
• Mining Infrastructure Operator: Entities responsible for operating and managing mining facilities.
• Address Identifier: A unique identifier used for digital currency transactions.
• Mining Pool Organiser: An individual or entity that coordinates the activities of a mining pool.

Under this law, mining is categorised as a component of financial turnover rather than the creation of digital currency itself.

The law specifies that only registered Russian legal entities and individual entrepreneurs are authorised to mine cryptocurrencies. However, individuals who mine within the energy consumption limits set by the Russian government may do so without being listed in the register.

The legislation also allows for the trading of foreign digital financial assets on Russian blockchain platforms. Additionally, the Bank of Russia is empowered to prohibit the issuance of certain digital assets if they are deemed to threaten the country’s financial stability.

Earlier, President Putin discussed the role and regulation of digital currencies with the government during an economic meeting. He emphasised the importance of Russia acting swiftly to develop a legal framework, regulatory measures, and infrastructure to support the circulation of digital assets, viewing this as a promising economic opportunity.

The law will take effect ten days after its official publication, except where specified otherwise.

Image Source: Coinpedia