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Langgam Pos - Russia has recently approved new legislation regulating cryptocurrency mining, which allows licensed mining companies to register with the Russian government for crypto mining activities.
President Vladimir Putin has endorsed this law as part of Russia’s broader strategy to reduce its reliance on the US dollar for international trade.
According to Cointelegraph, the legislation will come into effect in November 2024. It enables licensed mining firms to register through the Russian government’s database for cryptocurrency mining. Individual miners will also be permitted to mine digital currencies without official registration, provided their energy consumption remains below a certain threshold.
The oversight of the newly legalized crypto mining industry will be shared among the Bank of Russia, the Ministry of Finance, and specific government ministers, who will establish more precise regulatory requirements over the coming months. The bill also introduces a ban on mass cryptocurrency advertising within Russia.
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, is known for its efforts to diminish dependence on the US dollar in international trade. At the BRICS summit in 2019, the idea of an alternative digital currency was first proposed, drawing significant attention but facing considerable obstacles, including disagreements among major member countries on how a unified currency would function.
In 2023, Russia renewed its focus on developing a unified BRICS currency, with Deputy Chairman of the State Duma, Alexander Babakov, reporting that key members of the economic bloc are working on a new currency for international trade settlements. Following Babakov's statements, the Bank of Russia and the Russian government announced plans to establish a specialized entity to use digital assets for cross-border settlements.
Bank of Russia Admits to Using Crypto to Avoid Western Sanctions
The Central Bank of Russia has acknowledged its use of cryptocurrencies and other digital assets to facilitate payments with foreign partners in response to Western sanctions imposed over the Ukraine conflict.
Russia’s burgeoning trade with China, India, the UAE, Turkey, and other non-sanctioned countries has recently faced significant setbacks. Recent Western sanctions have targeted major Russian financial institutions, including the Moscow Stock Exchange and domestic alternatives to the global SWIFT payment system.
Central Bank Governor Elvira Nabiullina has identified payment challenges as a major issue for Russia’s economy, noting that Russian business partners in various countries are under pressure.
"New financial technologies create opportunities for previously unseen schemes. This is why we have softened our stance on using cryptocurrencies in international payments, allowing the use of digital assets for such transactions," Nabiullina said, according to Yahoo Finance.
Nabiullina also mentioned that a new global payment system, independent of Western institutions, will gradually emerge as many countries feel vulnerable relying solely on one international payment system with no alternatives.
She stated that Russia and other BRICS countries are discussing the BRICS Bridge payment system, which is designed to bridge the financial systems of member states.
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