Russia’s Putin gives green light to Bitcoin mining legalization

Two years after nearly banning Bitcoin and BTC mining, Russia has embraced the leading cryptocurrency to some extent.

Russian President Vladimir Putin officially legalized Bitcoin (BTC) and digital asset mining by signing new laws on August 8. From now on, a national registry will decide who has the right to mine BTC in Russia.

Putin’s crypto law exempts people with low-energy mining rigs. Legal citizens operating below the government’s electricity cap can mine Bitcoin. In addition to recognizing network infrastructure such as mining pools and address identifiers, Russian blockchains will allow participants to trade foreign virtual currencies.

The Central Bank of Russia reserves the right to impose a ban on individual assets if financial stability is threatened.

Putin’s signing of crypto legislation follows two frameworks passed by the State Duma last month, with the lower house of the Russian Federal Assembly proposing to give the green light to crypto mining starting November 1 this year.

Putin is believed to have written the law on Thursday, August 8, as Russia reverses course on digital assets. The second law authorizes Russia’s top bank to explore cross-border payments in cryptocurrencies.

While it was stated that the law will come into force on September 1, it was stated that El Salvador applied to Russia for crypto trading.

Nations are racing towards Bitcoin adoption

Russia’s crypto U-turn underscores a global shift toward Bitcoin adoption, with nations around the world turning their attention to the decentralized currency and its underlying blockchain technology.

President Nayib Bukele has implemented a nationwide policy in El Salvador to support BTC innovation, encourage cryptocurrency hoarding, accept Bitcoin as legal tender, and encourage mining activities.

The US is also on the verge of a watershed treaty for Bitcoin and cryptocurrencies, but American adoption could change depending on the November election results.

Wall Street giants such as BlackRock and Fidelity already offer regulated exposure to spot BTC funds, while Ethereum exchange-traded funds have received similar approval from the U.S. Securities and Exchange Commission.

Proponents suggest that a strategic BTC reserve, proposed by former President Donald Trump and Wyoming Senator Cynthia Lummis, could further boost adoption.