Russia Authorizes BTC and Crypto Mining – CryptoCurrencyWire

Russian president Vladimir Putin has given the green light to a new law aimed at reducing the country’s dependency on the U.S. dollar (USD) in global trade. The legislation, which will come into effect on Nov. 1, 2024, permits approved mining companies to register via a state-managed database to legally mine cryptocurrencies. In addition, individual crypto miners will have the option to mine without the need for official registration provided their energy consumption remains under a specified limit.

The oversight of the sector will be shared among various entities within the Russian government, including the Finance Ministry, the Bank of Russia and a select group of ministers. These authorities will work together to develop and implement more detailed regulations in the upcoming months. The new law also includes a provision that prohibits widespread crypto advertising within Russia.

The Russian parliament approved the bill along other legislation that permits the use of digital currencies for international transactions a week before Putin gave his approval, possibly aiding Russia in evading international sanctions. However, the second legislation is still awaiting Putin’s approval.

The United States and its allies first imposed economic sanctions on Russia in 2014 following the country’s annexation of Crimea. These sanctions were significantly intensified after Russia invaded Ukraine.

Putin appears to be easing his position on digital assets, although using cryptos as a means of payment has been illegal in Russia since 2022. He advocated for the use of cryptos in international trade last month, demonstrating his support for the recently enacted laws.

The BRICS group, consisting of South Africa, China, India and Brazil, has been increasingly interested in reducing its dependence on the USD for global trade. The notion of a substitute digital currency was initially put forth during the 11th BRICS meeting in 2019. Although the concept has gained popularity, there are still many obstacles to overcome, including differences in opinion among the major member states over the operation of such a currency.

Some experts are skeptical about the viability of a single gold-backed BRICS currency. Macroeconomist Lyn Alden, in an interview with Cointelegraph, expressed doubts about whether such a currency could effectively challenge the dominance of the USD. Alden pointed out the historical issue with paper currencies backed by gold, which is that more paper money is frequently printed than there is gold in circulation, which can cause monetary depreciation and even a currency collapse.

This latest decision by the Russian government could open up market opportunities for various enterprises such as BitFuFu Inc. (NASDAQ: FUFU) to extend their footprint into this jurisdiction if the existing conditions meet their investment criteria.

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