In a landmark move that signals Russia’s growing embrace of digital assets, President Vladimir Putin has signed a new law legalizing cryptocurrency mining and enabling the use of digital currencies in international trade. This development marks a pivotal shift in Russia’s digital economy strategy and positions the country as a key player in the global crypto landscape.
The legislation, officially signed on August 8, 2025, according to Moscow time (UTC+3), was reported by the state news agency TASS. It not only formalizes crypto mining as a legitimate economic activity but also sets the stage for experimental legal frameworks allowing cryptocurrency-based foreign trade settlements.
Legal Framework for Crypto Mining Takes Effect
Under the new law, only registered Russian legal entities and individual entrepreneurs are permitted to engage in cryptocurrency mining. This regulatory clarity aims to bring transparency and oversight to an industry that previously operated in a legal gray area.
A significant update is that the implementation timeline has been accelerated by nearly three months, originally scheduled for November but now effective much earlier. The law introduces key definitions such as:
- Cryptocurrency mining
- Mining pools
- Mining infrastructure operators
- Address identifiers
- Organizers of mining pool activities
Importantly, mining is now recognized not as the issuance of digital currency but as part of business turnover—aligning it with existing commercial tax and reporting standards.
While formal registration is required for large-scale operations, individuals whose energy consumption remains below government-set thresholds may mine without formal registration. This provision acknowledges grassroots participation while maintaining control over energy usage.
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Digital Innovation Experiment: Crypto in Foreign Trade
Complementing the mining legalization, another law passed on the same day establishes an experimental legal regime for digital innovation—specifically permitting the use of cryptocurrencies in international trade settlements.
This experimental framework allows temporary modifications or exemptions from existing legislation to facilitate:
- Cryptocurrency transactions
- Use of digital assets as payment under foreign trade agreements
- Adjustments to regulations around terms like “monetary value,” “monetary transactions,” and “electronic platforms”
Regulatory bodies including the Ministry of Finance, the Federal Security Service (FSB), and Rosfinmonitoring must approve any decisions affecting currency regulation or control. Additionally, the Central Bank retains authority to ban specific digital asset issuances if they threaten financial stability.
This dual approach—legalizing domestic mining while testing cross-border crypto payments—reflects a strategic vision: leveraging blockchain technology to enhance economic sovereignty and reduce reliance on traditional financial systems.
Putin’s Vision for Digital Assets
President Putin has long emphasized the importance of digital transformation in Russia’s economy. In recent discussions with government officials, he highlighted that digital assets represent a promising sector where Russia must act swiftly to establish clear laws and infrastructure.
While stressing that cryptocurrencies are not legal tender in the traditional sense, Putin acknowledged their growing role in global commerce. He called for proactive measures to support domestic circulation and international exchange of digital assets.
Back in 2020, Putin signed the Digital Financial Assets (DFA) Law, which granted crypto assets legal status in Russia but prohibited their use as payment and banned anonymous wallet deposits. Now, with these new amendments, Russia appears to be softening its stance—particularly in external economic relations.
He also reiterated his support for the digital ruble, advocating broader adoption across financial services and economic activities. The integration of decentralized technologies with state-backed digital currency could position Russia at the intersection of innovation and monetary control.
Russia’s Growing Crypto Footprint
Russia ranks second globally in cryptocurrency mining, thanks to its low electricity costs. In the past year alone, miners generated approximately $3.5 billion worth of Bitcoin**, trailing only the United States, which produced nearly **$9.5 billion.
In July 2025, Putin revealed that crypto mining accounts for 1.6% of Russia’s total electricity consumption—a figure that underscores both the scale and energy intensity of the industry. As demand grows, so does the need for sustainable policies balancing economic opportunity with resource management.
This energy footprint also highlights the industrial significance of crypto mining within Russia’s economy—an activity no longer seen as fringe but as a legitimate contributor to GDP and technological advancement.
BRICS and the Push for De-Dollarization
Russia’s crypto pivot is part of a broader trend among BRICS nations—Brazil, Russia, India, China, and South Africa—seeking alternatives to Western-dominated financial systems.
Alexei Guznov, Deputy Chairman of the Central Bank of Russia, previously stated that BRICS countries could become a leading hub for mutual cryptocurrency payments. There are ongoing discussions about developing a new blockchain-based common currency to facilitate trade within the bloc and reduce dependence on the U.S. dollar.
Earlier in 2025, Russia announced it would allow crypto payments in international trade—a decision largely driven by Western sanctions. By embracing decentralized finance tools, Moscow aims to strengthen trade resilience and expand financial connectivity with friendly nations.
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Core Keywords
- Cryptocurrency mining
- Digital assets
- Blockchain technology
- International trade payments
- Digital ruble
- BRICS crypto cooperation
- Legalization of crypto
- Energy consumption in mining
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency mining now fully legal in Russia?
A: Yes, as of August 2025, cryptocurrency mining is officially legalized for registered legal entities and individual entrepreneurs. Individuals using minimal energy may also mine without registration.
Q: Can Russians use crypto as everyday payment?
A: No. While crypto can now be used in international trade under experimental rules, domestic use as legal tender remains prohibited.
Q: Why is Russia promoting crypto despite past restrictions?
A: To counter Western sanctions, enhance energy monetization, and position itself as a leader in digital finance—especially within BRICS.
Q: Does this law affect Bitcoin or only Russian-developed tokens?
A: The law applies broadly to all cryptocurrencies, including Bitcoin and Ethereum, provided they comply with regulatory requirements.
Q: How does this impact global crypto markets?
A: It increases legitimacy and adoption potential, especially for cross-border transactions involving emerging economies.
Q: Will this increase electricity demand significantly?
A: Mining already consumes 1.6% of national power. Future growth will depend on efficiency improvements and policy enforcement.
The Road Ahead
Russia’s latest legislative moves reflect a calculated evolution—from cautious observer to active participant in the digital asset revolution. By legalizing mining and piloting crypto-based trade settlements, Russia is building a resilient, tech-forward economic model.
As blockchain continues to disrupt traditional finance, countries like Russia are proving that strategic regulation—not rejection—is the path forward.
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