Russia has taken a significant step in embracing digital currencies by officially legalizing Bitcoin and crypto mining. On Thursday, Russian President Vladimir Putin signed a law that permits the cryptocurrency mining process for specific entities within the country. This development marks another stride in BRICS’ (Brazil, Russia, India, China, South Africa) ongoing exploration of digital assets as they work to reduce reliance on the US dollar.
New Legal Framework for Crypto Mining in Russia
The new legislation allows “legal entities and individual entrepreneurs” registered with the government to mine cryptocurrencies. Additionally, individuals can participate in crypto mining as long as they stay within government-imposed energy consumption limits. The law also sets the stage for cryptocurrencies to be traded on native blockchain platforms, further integrating digital assets into the Russian economy. The law is set to take effect within ten days.
A Continued Push for Digital Currency Integration
This latest move follows a series of pro-crypto actions by Russia in recent months. In late July, the country allowed cryptocurrency payments in international trade, a decision that helped Moscow navigate Western sanctions and expand its trade relationships, particularly with China, El Salvador, and the UAE. The legalization of crypto mining is yet another step toward a more digitized financial future for Russia and the broader BRICS alliance.
As BRICS continues to explore the creation of a native currency using blockchain technology, Russia’s legalization of crypto mining underscores the group’s commitment to developing a robust digital currency infrastructure. This could signal a significant shift in global economic dynamics as BRICS nations seek to diversify away from the US dollar.