In a significant development for the BRICS alliance, Russia has officially legalized Bitcoin and cryptocurrency mining. Russian President Vladimir Putin signed the new law on Thursday, marking a pivotal step in the country’s embrace of digital currencies. The legislation, which goes into effect in ten days, allows for the legal mining of cryptocurrencies by specific entities and individuals under government-regulated conditions.
Key Aspects of the New Law
The new law stipulates that only “legal entities and individual entrepreneurs” listed in a government registry are permitted to mine cryptocurrencies. Additionally, individual miners are allowed to participate as long as they adhere to energy consumption limits set by the government. This regulatory framework aims to control and monitor crypto mining activities while integrating them into the country’s formal economy.
This legislation also opens the door for the trading of cryptocurrencies on Russian blockchain platforms, further embedding digital currencies within the nation’s financial system.
Russia’s Broader Strategy and BRICS Implications
Russia’s move to legalize crypto mining is the latest in a series of pro-crypto actions aimed at countering Western economic sanctions and enhancing the country’s trade capabilities. In July, Russia legalized the use of cryptocurrencies for international trade, a strategic decision that not only bypassed sanctions but also strengthened its economic ties with BRICS partners.
The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has been increasingly focused on digital assets as a means of reducing reliance on the U.S. dollar. There is ongoing discussion within the group about creating a native digital currency using blockchain technology, which could further consolidate BRICS as a formidable economic alliance.
Russia’s legalization of crypto mining aligns with this broader vision. It represents a critical step toward a more digitized and decentralized financial future for both Russia and the BRICS nations. This move could potentially enhance trade relations within the bloc, particularly with countries like China and the United Arab Emirates, which have shown interest in expanding their digital currency capabilities.
Russia’s Growing Pro-Crypto Stance
This isn’t Russia’s first move toward embracing cryptocurrency this year. The legalization of crypto payments in international trade was a significant milestone, aimed at bolstering the country’s economic resilience amid international sanctions. Following this decision, countries like El Salvador expressed interest in increasing trade with Russia, highlighting the growing global impact of Russia’s crypto policies.
With the legalization of crypto mining, Russia continues to pave the way for a more integrated digital economy, positioning itself and the BRICS alliance at the forefront of the global shift toward digital currencies.
