Russian President Vladimir Putin has officially endorsed a new legislative measure designed to reduce Russia’s reliance on the US dollar in international trade transactions. This strategic move is set to take effect in November 2024. Under this new law, approved cryptocurrency mining companies will have the opportunity to register in a specialized state database, streamlining their operations significantly. This registration process aims to formalize and support the growing sector of digital currency mining within Russia.
For smaller-scale miners, the regulations offer a degree of flexibility. Individual miners, whose energy consumption does not exceed a specified limit, will be permitted to engage in cryptocurrency mining without the need for official registration. This provision is intended to encourage broader participation in the digital currency space while maintaining manageable energy consumption levels. With crypto mining approved in Russia, it wouldn’t be surprising to see more people trading cryptocurrencies on Finance Phantom or other platforms that facilitate seamless crypto trading.
The Bank of Russia’s Role
The oversight of Russia’s cryptocurrency mining industry will be jointly managed by the Bank of Russia, the Ministry of Finance, and a specially designated cabinet of ministers. This trio will be responsible for crafting and implementing detailed regulatory frameworks over the next few months to ensure effective governance and compliance within the sector.
Additionally, the new legislation includes a significant measure aimed at curbing the rapid increase of cryptocurrency-related promotions within the country. The bill imposes a ban on mass advertising for cryptocurrencies, highlightinga more cautious approach towards the marketing and promotion of digital assets within Russia’s borders. This regulatory action shows the government’s intent to carefully manage the growth of the industry while addressing potential risks associated with widespread cryptocurrency advertising.
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Did the BRICS Alliance Have Something to Do with This?
The BRICS alliance, which consists of Brazil, Russia, India, China, and South Africa, is a combination of rapidly developing economies that is actively working to reduce its dependence on the US dollar for international trade. The concept of creating an alternative digital currency was first proposed at the 11th annual BRICS Summit in 2019. This proposal has since captured considerable attention. That said, there are still some challenges. There are significant hurdles, including differing viewpoints among member states on the specifics of how a unified digital currency could be implemented and operationalized effectively.
In 2023, Russia planned to create a unified currency for the BRICS bloc. Alexander Babakov, who was Deputy Chairman of the State Duma, revealed that the leading nations within the group are in the midst of developing a novel currency intended specifically for international trade settlements. Following Babakov’s remarks, the Bank of Russia and the Russian government unveiled plans to create specialized institutions dedicated to employing digital assets for international transactions. This development is intended to promote the use of digital currencies in cross-border trade. With Russia going above and beyond to promote crypto, there could be an increase in the usage of platforms like Finance Phantom trading robot, with traders looking to make the most out of the crypto sphere
