Putin Approves Legislation Legalizing Bitcoin and Crypto Mining in Russia

[ABCbits]

Putin Approves Legislation Legalizing Bitcoin and Crypto Mining in Russia

Russian President Vladimir Putin has signed a new law legalizing Bitcoin and cryptocurrency mining in Russia, according to a report by Russian news agency TASS.

The legislation defines terms such as digital currency mining, mining pools, and mining infrastructure operators.

Mining activities are now classified as part of financial turnover, rather than the issuance of digital currency... Read more here.


I would speculate this is another attempt to evade sanction, which previously done by Iran. And while initially it sounds good news to Bitcoiner, the news doesn't mention details of the law itself. Your opinion is greatly appreciated.

[Z-tight]

The legislation is mainly about BTC and cryptocurrency mining, it also states that miners have to register with the authorities before mining in Russia, so i hope the government isn't going to use miners for any kind of blacklisting later. I don't know if to be excited about this, it is hard to be excited about things coming out from Russia these days, for obvious reasons anyway.

[Yamane_Keto]

I would speculate this is another attempt to evade sanction, which previously done by Iran. And while initially it sounds good news to Bitcoiner, the news doesn't mention details of the law itself. Your opinion is greatly appreciated.

Russia's economy is very large and Bitcoin can be easily tracked. I don't think that legalizing Bitcoin will help the Russian economy avoid sanctions. The US may decide to ban any Bitcoin address that deals with Russia, which will force many to avoid doing business with them. They will be easy to track because countries trade in large amounts that are easier to track.

[examplens]

Russian President Vladimir Putin has signed a new law legalizing Bitcoin and cryptocurrency mining in Russia, according to a report by Russian news agency TASS.

A smart move on his part, a logical sequence of events. It is not clear to me why there was so much waiting for such a decision to be made.
In the long term, this could have a greater effect on crypto than anything Trump and his satellites announce.

I'm not a fan of either of them

[Stompix]

Doesn't sound that encouraging:

Only Russian legal entities and individual entrepreneurs included in a register will have the right to mine. Individuals who do not exceed the energy consumption limits set by the Russian government will have the right to mine digital currency without being included in the register.
The authorized body and the central bank will have the right to introduce a ban or restriction on transactions with digital currency to maintain Russia's monetary stability.
This law also brings into effect a ban on advertising cryptocurrencies and offering them to an unlimited number of people.

Is the last part effectively a ban on airdrops?

The legislation is mainly about BTC and cryptocurrency mining, it also states that miners have to register with the authorities before mining in Russia, so i hope the government isn't going to use miners for any kind of blacklisting later.

Later? The FSB is most likely taking its share right now, there is no profitable business there that doesn't trigger a really unwelcomed attention from the state, the enl excpection would be if the business aren't already owned by them.

[Lucius]

The legislation is mainly about BTC and cryptocurrency mining, it also states that miners have to register with the authorities before mining in Russia, so i hope the government isn't going to use miners for any kind of blacklisting later. I don't know if to be excited about this, it is hard to be excited about things coming out from Russia these days, for obvious reasons anyway.

I am not at all excited about this decision because of everything that I have already written in the previous topic, and regardless of the fact that some people think that there is something good for Bitcoin, I think that for many people this news will serve for new attacks on Bitcoin. If by any chance Russia uses BTC to avoid sanctions, then those who imposed the sanctions will have to do something, and that only means that we will all feel it on our skin.

Of course it's stupid to blame a tool because someone uses it, but today's world is very far from logical thinking...

[target]

Evading could just be one reason but Putin I  think also considers the fact that US  is about to adopt BTC as well. He might as well be the first to send the message to his fellow Russians to use  crypto.

Trump says he wants BTC to be mined in US. Well, he isn't as crazy as anyone thought because President Bukele did it the first and he seem successful.

[MrSpasybo]

Putin Approves Legislation Legalizing Bitcoin and Crypto Mining in Russia

Russian President Vladimir Putin has signed a new law legalizing Bitcoin and cryptocurrency mining in Russia, according to a report by Russian news agency TASS.

The legislation defines terms such as digital currency mining, mining pools, and mining infrastructure operators.

I would speculate this is another attempt to evade sanction, which previously done by Iran. And while initially it sounds good news to Bitcoiner, the news doesn't mention details of the law itself. Your opinion is greatly appreciated.

Clearly, the sanctions imposed due to the war have forced Russia to seek solutions, and crypto offers a way to avoid the current troubles. Since Russian businesses have been able to use crypto in international transactions, it's understandable and not surprising for the crypto community that crypto mining has become legal in Russia.

Personally, I dislike the idea of crypto being used by an invading country, but I also can't stop Russia from accessing and using crypto if they really want to. I hope that other governments have enough tools to detect crypto transactions related to the Russian government and can prevent them to continue maintaining sanctions for peace.

[NotATether]

Clearly, the sanctions imposed due to the war have forced Russia to seek solutions, and crypto offers a way to avoid the current troubles. Since Russian businesses have been able to use crypto in international transactions, it's understandable and not surprising for the crypto community that crypto mining has become legal in Russia.

Personally, I dislike the idea of crypto being used by an invading country, but I also can't stop Russia from accessing and using crypto if they really want to. I hope that other governments have enough tools to detect crypto transactions related to the Russian government and can prevent them to continue maintaining sanctions for peace.

Um that inadvertently means that they will use blockchain analysis to see which transactions are 'sanctioned' (really just going to Russian businesses and prominent people).

The general consensus in the crypto community is that blockchain analysis is universally hated because it produces flawed results and makes unnecessary problems for us.

[ABCbits]

The legislation is mainly about BTC and cryptocurrency mining, it also states that miners have to register with the authorities before mining in Russia, so i hope the government isn't going to use miners for any kind of blacklisting later. I don't know if to be excited about this, it is hard to be excited about things coming out from Russia these days, for obvious reasons anyway.

It's one of the concern, especially when Russia government already perform various censorship.

Doesn't sound that encouraging:

Only Russian legal entities and individual entrepreneurs included in a register will have the right to mine. Individuals who do not exceed the energy consumption limits set by the Russian government will have the right to mine digital currency without being included in the register.
The authorized body and the central bank will have the right to introduce a ban or restriction on transactions with digital currency to maintain Russia's monetary stability.
This law also brings into effect a ban on advertising cryptocurrencies and offering them to an unlimited number of people.

Is the last part effectively a ban on airdrops?

If CoinDesk use accurate word, wouldn't limiting number of people who can airdrop can be used as workaround?

[TomPluz]

I would speculate this is another attempt to evade sanction, which previously done by Iran. And while initially it sounds good news to Bitcoiner, the news doesn't mention details of the law itself.

Without looking at the nitty-gritty details of this law on cryptocurrency and mining signed by Vladimir Putin after some years of  hesitation on whether to recognize Bitcoin and allow mining or not, generally speaking this can still be considered as good news to the industry and am sure this can have some impact on Bitcoin in one way or another. Of course, this is one way to go around with the sanctions imposed on the country and yes if they can have Bitcoin they can do so many things without being hampered by countries like USA and its minions. What is interesting is that this comes after Trump made a promise to be friendly to Bitcoin and encourage more mining within the country...so in case Trump will win and will follow-up his many crypto-related promises we might be entering a very exciting Bitcoin mining race between USA and Russia and which can encourage China to also join the party.

[UNIVERSE]

Personally, I dislike the idea of crypto being used by an invading country, but I also can't stop Russia from accessing and using crypto if they really want to. I hope that other governments have enough tools to detect crypto transactions related to the Russian government and can prevent them to continue maintaining sanctions for peace.

Each country has the right to use crypto. Bitcoin is decentralized, it isn't limited to certain areas in the world. I don't know why you use the term of "invading country" to Russia, I think even US is also an invading country. Anyway, I'm not interested to mix the political matter with crypto.

I think other countries have no right to detect every crypto transaction done by Russia. There is no country which has no authority to regulate the crypto industry. Each country has the right to make their own policy related to crypto.

[target]

Personally, I dislike the idea of crypto being used by an invading country, but I also can't stop Russia from accessing and using crypto if they really want to. I hope that other governments have enough tools to detect crypto transactions related to the Russian government and can prevent them to continue maintaining sanctions for peace.

Each country has the right to use crypto. Bitcoin is decentralized, it isn't limited to certain areas in the world. I don't know why you use the term of "invading country" to Russia, I think even US is also an invading country. Anyway, I'm not interested to mix the political matter with crypto.

I think other countries have no right to detect every crypto transaction done by Russia. There is no country which has no authority to regulate the crypto industry. Each country has the right to make their own policy related to crypto.

North Korea was pretty much sanctioned and there was even an ETH developer who faced legal case when he goes to North Korea to teach blockchain.

I think if North Korea will also adopt BTC and also mine BTC, it will have its independence as well. So finally all countries will all have its independence in the financial trades. Evem the countries they are prohibited to trade with is no longer possible to stop.

Russians have been using Bitcoin since its beginning so its not surprising anymore to see Russia will openly encourage everyone.

[bitmover]

North Korea was pretty much sanctioned and there was even an ETH developer who faced legal case when he goes to North Korea to teach blockchain.

I think the case you are reffering to might be Tornado Cash?

Tornado Cash was used to launder money in North Korea, this is why it was sanctioned. Probably they used it to move money illegally to north korea.

https://www.bloomberg.com/news/articles/2022-08-08/crypto-mixer-tornado-cash-sanctioned-by-us-treasury-department

Tornado Cash, a popular cryptocurrency service that allows users to mask their transactions, was sanctioned by the US Treasury Department after North Korean hackers relied on it to launder illicit gains, officials announced on Monday. The sanctions bar American companies and individuals from doing business with it.

[Faisal2202]

I would speculate this is another attempt to evade sanction, which previously done by Iran. And while initially it sounds good news to Bitcoiner, the news doesn't mention details of the law itself. Your opinion is greatly appreciated.

Indeed this development is an attempt to evade the sanctions but isn't the beauty of BTC  and crypto that they provide full freedom and the US can't ban Russia from trading with other countries in the crypto world like they did in the fiat world. That's the beauty of crypto and Russia is taking benefit of it and IMO there is nothing wrong with that.

Besides the fact that people who don't like Russia will say they are doing wrong, but I as a neutral person think they are doing nothing wrong, because their ways have been shut down by the US so they have to find other ones.

Overall for me, it's a good development because first, they said the international trades would be done in the form of BTC and now they have legalized crypto mining which is a good thing for the overall market.