Russia Mines $3 Billion Worth of Bitcoin in 2023, Legalizes Crypto Mining
Approximately 54,000 Bitcoin (BTC) was mined in Russia last year, amounting to around $3 billion in value, according to Sergey Bezdelov, the Director of the Industrial Mining Association. This information was shared at the Eastern Economic Forum 2024 and was first reported by media outlet Izvestia.
Bezdelov highlighted that this significant amount of Bitcoin mining could potentially generate around 50 billion rubles in taxes for the Russian government. With the recent legalization of crypto mining in Russia, he anticipates that more investors will be attracted to the industry, ultimately leading to an increase in tax revenue.
On August 8, Russian President Vladimir Putin signed a law that officially legalized crypto mining in the country. This move signifies that crypto mining is now recognized as a legitimate economic activity, allowing legal entities to participate in it as long as they are properly registered or operate within specific energy consumption limits.
The implementation of this new legal framework is expected to not only boost investments in infrastructure but also contribute to the overall economic growth of the country.
While legalizing mining is a significant step forward for the crypto industry in Russia, it is just the beginning of a larger effort to expand crypto operations in the nation. Russia has been facing economic sanctions for quite some time, prompting authorities to explore alternative payment systems such as crypto payments to bypass these restrictions.
Reports have surfaced indicating that Russia is planning to establish at least two crypto exchanges in major cities like Moscow and St. Petersburg. These exchanges are intended to serve as key hubs for international trade and are part of a broader strategy to enhance economic cooperation with BRICS nations.
Recent trials for crypto exchanges commenced earlier this month, as Bloomberg reported. This strategic move is aimed at lessening the impact of international sanctions on the Russian economy.
The legalization of crypto mining in Russia, along with plans to establish crypto exchanges, signifies a growing acceptance and adoption of cryptocurrencies in the country. These developments not only showcase Russia’s commitment to embracing new technologies but also highlight its efforts to navigate economic challenges effectively.
