MOSCOW: Russian President Vladimir Putin has signed a law that makes cryptocurrency mining legal in Russia. This law brings in new terms like digital currency mining, mining pools, and mining infrastructure operators. It also defines who can run mining pools. In simple terms, mining is now seen as part of the process of using digital currency, not creating it.

Only Russian companies and entrepreneurs registered on an official list can legally mine cryptocurrency. However, ordinary people can still mine digital currency at home as long as they don’t use more electricity than the government allows, even if they aren’t on the list.

The law also allows foreign digital assets to be traded on Russian blockchain platforms, but the Bank of Russia can stop certain trades if they might harm the country’s financial stability.

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Russia isn’t alone in this move. Countries like El Salvador and the Central African Republic have also legalized cryptocurrency.

Legalising cryptocurrency mining can boost economic growth by attracting investments and creating jobs in the tech sector, while also generating tax revenue. It can drive technological advancements but might strain energy resources and pose risks to financial stability due to the volatile nature of cryptocurrencies.

Clear regulations are needed to manage these risks and prevent illegal activities, ensuring that the benefits outweigh the challenges. Overall, it positions a country as a leader in the digital economy but requires careful management to maintain stability.