President Vladimir Putin has signed a crypto mining regulations bill on Thursday that would formally recognize and regulate cryptocurrency mining in Russia.
Integration of this new law will be a milestone for the country as it enters the international cryptocurrency market. But it also has prohibitive clauses to forbid unlawful actions, which will allow Russia to engage and regulate the digital finance.
Crypto mining regulations: Who can mine and who’s exempt
Since this November, legal amendments will only allow registered legal entities and individual entrepreneurs to mine cryptocurrencies in Russia. This is pursued in the pursuit of achieving the best balance between innovation and control.But to the small-scale miners, there is a reprieve.
As long as they remain within certain specified government-determined energy parameters, they do not have to sign up. It also encourages small activities while at the same time making sure that all large mining undertakings conform to the rules.Terms such as “mining pool” and “mining infrastructure operator” have therefore been incorporated in the new law to provide clearer definition of roles in the mining arena.
The miners themselves are going to be required to declare their earnings in cryptocurrencies to a particular government body for the purposes of legitimizing the sector which is usually rather shady.
The Russian Central Bank will also monitor the transactions involving digital coins to ensure the stability of the financial market and intervene when deemed necessary.
Putin’s vision: Leading the digital currency revolution
As stated above, Putin’s government isn’t just attempting to follow the trend of digital currencies as seen in other countries; instead, it is seeking to lead. And he looks at this as one aspect of Russia’s larger economy that has to be adjusted and insists on the fact legal secure of Bitcoin mining.
In recent discussions, Putin highlighted how digital currencies can change or create a new paradigm in business and international payments, among other things.
According to him, Russia has no choice but to develop the future plan that would establish the infrastructure of digital future both in the worldwide and within the territory of Russia.New mining laws in Russia – the process is gradually progressing.
As much as it embraces mining, it is taking measures to mitigate the vice. The legislation include the inability to use mined digital currencies in the performance of financial activities to combat illicit use for money laundering and other unlawful intentions.
The current law does only permit the swapping of foreign digital assets on the Russian blockchain platforms while the Central Bank could freeze all the transactions that may cause a threat to the stability of the Russian economy.
With such an approach, the government is seen to be encouraging the innovation process but at the same time maintaining a strict authoritarianism over the process.
