Putin Greenlights Crypto Mining In Russia 2 Months After Trump Vowed To Mine All Remaining Bitcoins In US

Russian President Vladimir Putin greenlighted a law that would legalize cryptocurrency mining in the country, two and a half years after the country’s central bank called for a blanket ban on such activities.

What Happened: The law, freshly signed by Putin, introduces a variety of new terminologies related to the digital currency mining sector, such as mining pool, mining infrastructure operator, and address identifier, according to Russia’s state-owned news agency TASS.

The law mandates that only Russian legal entities and individual entrepreneurs registered with the government would be permitted to mine. However, individuals who stay within the energy consumption boundaries set by the government can mine digital currencies without being on the register.

The legalization reflected President Putin’s stance on the activity, differing sharply from that of the Central Bank of Russia.

Putin rejected the central bank’s proposal to ban cryptocurrencies in January 2022, arguing that the country possesses ”competitive advantages” in the field of mining. He noted the country’s abundance of electricity and well-trained workers as possible drivers of the ecosystem.

See Also: Trump’s Bitcoin Stockpile Plan Would Have ‘Positive Impact’ On Crypto Prices, But Would Leave Investors Exposed If Government Decides To Sell, Says Expert

Why It Matters: This move by Putin is a significant step towards the legitimization of cryptocurrency in Russia and comes at a time when the U.S. Republican Party, headed by former President Donald Trump, has undertaken a pro-cryptocurrency political campaign.

In June, the Republican hopeful said, “We want all the remaining Bitcoin BTC/USD to be made in the USA!” He went on to have a meeting with executives from leading U.S.-based Bitcoin mining companies at his Mar-a-Lago resort, including Matthew Schultz, executive chairman at CleanSpark Inc., and Jason Les, CEO and director of Riot Platforms Inc.

Trump is running for his second term at the White House, and it is hard to tell whether these pre-poll pledges would be translated into tangible legislative initiatives, unlike in Russia, where the law has already been passed by the head of state.

Regardless, the growing competition between countries to claim a piece of the pie bodes well for the industry’s future.

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