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Russian authorities approved a list of regions where
cryptocurrency mining will be banned starting January 1, 2025. The ban will
last for six years, ending on March 15, 2031. This decision was made today (Tuesday).
These measures align with cryptocurrency mining laws signed
by the Russian president Vladimir Putin in August and October 2024, aimed at
managing energy consumption.
Russia Bans Mining, Enforces Seasonal Restrictions
It will apply to 10 regions, including Dagestan, Ingushetia,
Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk,
Lugansk, Zaporizhzhia, and Kherson.
The ban will affect both mining pools and individual miners.
Seasonal restrictions will also be enforced in three Siberian regions—Irkutsk,
Buryatia, and Zabaikalsky—during energy consumption peaks. These restrictions
will run from January 1 to March 15, 2025, and extend from November 15 to March
15 in subsequent years.
Initially, the government proposed a broader ban on 13
regions, including Irkutsk, a key mining hub. The final version of the
restrictions is a revision of this initial proposal.
Russia has officially legalized cryptocurrency mining,
introducing a legal framework that regulates the sector, according to RT. The
law, signed by President Vladimir Putin, defines the rights and obligations of
those involved in cryptocurrency mining.
JUST IN: 🇷🇺 Russia to Ban Crypto Mining in 10 Regions for 6 Years Due to Energy Shortages Starting Jan 2025.Note: Crypto mining remains legal in Russia; the ban applies only to specified regions facing energy challenges. pic.twitter.com/nmJzwMNkC9
— Crypto India (@CryptooIndia) December 24, 2024
New Law Regulates Cryptocurrency Mining in Russia
The law, published on Russia’s official legal portal, brings
clarity to the previously unregulated sector, as reported by Finance Magnates. By recognizing
cryptocurrency mining as a legitimate activity, the government integrates it
into the broader economy rather than treating it solely as a method for issuing
digital currency.
Under the new legislation, only
registered Russian legal entities and individual entrepreneurs are allowed to
engage in cryptocurrency mining. Individual miners can operate without
registration as long as their energy consumption remains within government-set
limits. Larger mining operations will face stricter controls.
BREAKING: 🇷🇺 Russian President Putin says “Who can ban #Bitcoin? Nobody.” pic.twitter.com/6mJ664BZZ8
— Bitcoin Magazine (@BitcoinMagazine) December 4, 2024
Russia Embraces Cryptocurrencies to Counter Sanctions
Putin acknowledged the potential of Bitcoin, describing its
rise as an inevitable development in technology. For Russia, cryptocurrencies
are viewed as an innovation and as a strategy to mitigate sanctions and
reduce reliance on the dollar.
“Who can ban Bitcoin? Nobody,” Putin stated at the
VTB Investment Forum, according to the local news agency TASS. His comments
emphasized his belief that digital currencies are a natural progression in
global finance, asserting that these instruments will continue to evolve
regardless of the dollar.
Putin also noted that the need to reduce costs and improve
reliability ensures the ongoing growth of Bitcoin and other digital payment
methods. This position reflects a broader shift in Russia’s financial policy,
with the country adopting cryptocurrencies as a means to circumvent
Western-imposed restrictions.
This article was written by Tareq Sikder at www.financemagnates.com.
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