Russia’s Duma Passes Law to Legitimize Bitcoin Mining in the Nation

• A major change in the country’s stance toward cryptocurrencies is marked by the measure.
• The government has the power to prohibit cryptocurrency mining in certain areas.

A law to legitimize Bitcoin mining has reportedly been passed by Russia’s Duma. This measure, which was approved on the first reading, lays the groundwork for a digital currency mining sector that is regulated. A major change in the country’s stance toward cryptocurrencies is marked by the measure. Which seeks to limit illicit activity, solicit investments, and provide employment opportunities.

A group of deputies spearheaded by Anatoly Aksakov, Chairman of the Duma Committee on Financial Markets, proposed a measure that lays out specific regulations for Bitcoin mining. As to the RIA Novosti report, the goal is to decrease illicit mining operations and associated crimes via the implementation of stringent regulations.

Budget and Taxes Committee member Nikita Chaplin claims that the rule will make it more difficult to engage in illicit activities using digital currency.

Stringent Compliance

Moreover, the Russian government and the Bank of Russia will work together to establish these guidelines. Furthermore, compliance will be monitored by the Ministry of Digital Development to guarantee that mining operations follow the set regulations.

Furthermore, according to the report, the government has the power to prohibit cryptocurrency mining in certain areas if deemed essential. In this nation, mining may only be done by officially recognized businesses or individuals.

In the meantime, the measure authorizes the sale of digital currency that has been mined independently of Russia’s information infrastructure. Nevertheless, it forbids the use of crypto for anything other than mining and distribution inside mining pools within Russia. 

Promoting digital currency issuance-related products and services, as well as advertising or selling cryptocurrencies to the general public, is likewise prohibited. The bill will take effect on September 1, 2024, if enacted.

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