Has Russia really ‘legalized’ cryptocurrency mining?
Russian President Vladimir Putin has enacted laws to regulate cryptocurrency mining in Russia, primarily defining industry terms and imposing new registration and reporting requirements. Experts argue that this does not amount to full legalization but instead introduces a framework with increased controls and restrictions. Key aspects include prohibiting foreign entities from mining and enabling the government to restrict operations in certain regions. Two laws were signed: one that outlined definitions and reporting requirements effective November 1, 2024, and another detailing operational regulations to take effect in March 2025. Industry analysts, like Nikita Zuborev, suggest that the laws simply create a foundation for more precise regulation and taxation without offering clear new rules. Mining companies had been operating freely before the legislation, facing challenges due to the lack of regulations. New restrictions include banning mining for individuals associated with the power industry, with certain regions expected to face bans due to power shortages. Notably, the laws do not clarify how to legally sell mined cryptocurrencies, leaving an uncertain status for digital asset transactions remaining. This situation follows previous legislation that recognized cryptocurrencies without allowing their use as payment.
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