Putin Approves Legislation Legalizing Bitcoin and Crypto Mining in Russia

[robelneo]

It will become effective on November 1, 2024 based on Coindesk article thisis actually expeeimental and they have full control as those interested will have to registered and get license from regulators this is a big shift coming from Russia before Russia is banning everything related to Cryptocurrency now they are starting to integrate it to their system, maybe Russia have realized that they cnnot ignore Bitcoin as a world wide phenomena.

https://www.coindesk.com/policy/2024/07/30/russia-legalizes-crypto-mining-and-brings-an-experimental-regime/

[Z-tight]

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

Yeah, very true, i would be worried for those mining pools. Miners should not be used in anyway for any kind of blacklisting or censorship, but i think it is only matter of time beefore it starts happening frequently. We already know of OFAC blacklisted address in the U.S, though i don't think U.S. miners have begun any blacklisting on that grounds, no?

[Zed0X]

~
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.

Is there no tool that traces which block/s will be mined by North Korean miners? It might still be difficult for them to convert mined BTC to fiat just like how they have launder cryptocurrencies they allegedly hacked.

[bitterguy28]

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.

this is definitely good news for bitcoin enthusiasts however there is a nagging feeling where the government is only trying to give a sense of privacy but in reality they are taking it away what is the point of cryptocurrencies if you still need to register to the government in order to use or operate it when cryptocurrencies were made exactly to avoid centralization

[PX-Z]

Mining in russia are only for registered businesses to operate mining there, well, mining is really a kind of business, or else you will be labeled as lawbreaker who will tax evade and etc.

Is there no tool that traces which block/s will be mined by North Korean miners? It might still be difficult for them to convert mined BTC to fiat just like how they have launder cryptocurrencies they allegedly hacked.

There are so-called "anonymous miner" who also got mined a block sometime by luck as the higher probability for mining will always from larger mining pools. Idk how these pools regulations and policy if what miner participants' countries they accept to join the pool. Probably some NoKor miners joined already there.

[snipie]

A move forward although late. They opened door to profit from cryptocurrencies even though it has some restrictions. Overall it is a way to get a part from the cake while they can and especially to get around sanctions imposed by the West.

[ABCbits]

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

Yeah, very true, i would be worried for those mining pools. Miners should not be used in anyway for any kind of blacklisting or censorship, but i think it is only matter of time beefore it starts happening frequently. We already know of OFAC blacklisted address in the U.S, though i don't think U.S. miners have begun any blacklisting on that grounds, no?

There are some attempt to make Bitcoin mining pool censor TX. For example,
1. MARA tried that in past, https://ir.mara.com/investors/news-events/press-releases/detail/1239/marathon-digital-holdings-becomes-the-first-north-american-enterprise-miner-to-produce-fully-aml-and-ofac-compliant-bitcoin.
2. An analysis shows some pool doesn't include certain TX. https://b10c.me/observations/08-missing-sanctioned-transactions/.

[Z-tight]

There are some attempt to make Bitcoin mining pool censor TX. For example,

Thank you for the links, i believe if it is proven that there is a pool that constantly blacklists transactions, then i feel the miners mining in that pool would pull out their computational power and mine in other pools that is not censoring tx's, this will reduce the hashrate of the censoring pool and the rate at which they mine blocks.

I say so because if censorship in mining becomes very popular, then we can say goodbye to a decentralized and censorship resistant network.

[Lucius]

~snip~
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.

Will you think the same if because of this decision and the possibility that Russia will use mixers, the pressure on them from the US, EU and UK will be much greater than it is now and accordingly mixer that you are promoting and some others will be seized?

Generally speaking, you can't ban anyone from using Bitcoin, but sanctions against Russia exist to try to stop the aggression it is doing to another country - therefore, any use of cryptocurrencies to circumvent such sanctions is completely negative.

Being neutral in a specific case is the same as being on the side of the one who does evil, regardless of the fact that you feel more comfortable in a neutral position.

[bhadz]

I am not saying I like Putin but I like his decision. Their financial economy has been in sanction and I think until now that it does.
So exploring to the new ways of making money and approving and legalizing Bitcoin mining and cryptos means a lot to them. I'm sure that most of the Russians that are earning crypto and as well as mining them won't have any troubles anymore as the climate there is favorable for mining.

[ABCbits]

There are some attempt to make Bitcoin mining pool censor TX. For example,

Thank you for the links, i believe if it is proven that there is a pool that constantly blacklists transactions, then i feel the miners mining in that pool would pull out their computational power and mine in other pools that is not censoring tx's, this will reduce the hashrate of the censoring pool and the rate at which they mine blocks.

I say so because if censorship in mining becomes very popular, then we can say goodbye to a decentralized and censorship resistant network.

But looking at behavior of those who stake ETH, i don't expect majority of miners would move just because few TX got censored. Although it's different case if they censor so many TX, where miner notice they could earn more Bitcoin on pool which doesn't censor.

[ZAINmalik75]

It will become effective on November 1, 2024 based on Coindesk article thisis actually expeeimental and they have full control as those interested will have to registered and get license from regulators this is a big shift coming from Russia before Russia is banning everything related to Cryptocurrency now they are starting to integrate it to their system, maybe Russia have realized that they cnnot ignore Bitcoin as a world wide phenomena.

https://www.coindesk.com/policy/2024/07/30/russia-legalizes-crypto-mining-and-brings-an-experimental-regime/

In addition to your statement that miners have to get registered first is not correct because according to the source link that OP has shared it says individual miners don't have to register with governments but they have to consume electricity under limits.

There are not so many individual miners out there I think that's why they gave this compromise.

It is really strange how their views about crypto are changing as last time they were banning it in the name of devaluation of their Rubble and now they are adopting it at a bigger level.

[MrSpasybo]

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.

I'm not entirely sure about this, but on-chain analysis is part of police work to track and identify criminals who have used crypto for illegal purposes. Additionally, on-chain analysis is used by investors to understand the buying and selling behaviors of whales, and many investors making significant profits from this trading method.

I believe that Western countries are currently focusing on analyzing on-chain data to find evidence to penalize countries that trade with Russia using crypto to avoid economic sanctions. I think they have experience applying this to Iran and North Korea.

[Z-tight]

But looking at behavior of those who stake ETH, i don't expect majority of miners would move just because few TX got censored. Although it's different case if they censor so many TX, where miner notice they could earn more Bitcoin on pool which doesn't censor.

Eth network is different from the BTC network and the risk of censorship is very high in the pos mechanism. I believe BTC miners should move just because of censorship and not even because of what they can or can't earn, but i guess mining is just a business and it is all about profit.

However, if we are to keep the network at being censorship resistant, then the right thing to do is for miners to reject any form of censorship.

[UNIVERSE]

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.

There is no much information about crypto in North Korea. I think North Korea is very aware of the potential of crypto future. That's why they ever stated that they want to develop crypto in their country. They even wants to grow mining industry, too. But I don' really know the further information about this. You can learn this article about crypto in North Korea: https://www.investopedia.com/news/what-north-koreas-role-bitcoin/

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

Agree. Rusia has been utilized crypto industry a long time. Sure, it is not so surprising if Rusia wants to develop crypto there. Rusia also has a big role in crypto because Rusia policy may influence crypto market.