Bitcoin Forum

Bitcoin Mining now being legalized in Russia https://watcher.guru/news/brics-russia-officially-legalizes-bitcoin-and-crypto-mining and this have  been signed into law already, I see it as a new development over BRICS in taking more considerations towards bitcoin by giving due recognition on it's mining, though China remains as it was.

Cryptocurrency mining is allowed to take effect for any industry or miner who are ready to go by the stipulated amount of energy consumption rate for the mining purpose in the country, we can also recall that recently, Russia approved the acceptance of crypto as a means of payment through international transactions.

Bitcoin is gaining more wins each day on every side, The world is now realizing more on how they needed bitcoin, especially by people and region it had been wrongly talked about, the BRICS is the main target now.

Am not sure if this has been discussed already, but I've checked on the bitcoin discussion board and see nothing related to the news updates on it.

Russia is doing whatever it takes for them to avade the Western sanctions. But it's a good news for Bitcoin at least.

It will be interesting to know the proposed energy consumption limit and how the mining companies or individual miners are taxed.

The international politics is very complex. I see why Russia is looking forward for a cryptocurrency related financial system for the international trade as well. Because China is trying very hard to push Yuan for every trade they are completing with their BRICS allies. Russia has to find an alternative soon enough to counter this.

This is a very interesting scenario and that was really expected after sanctions. I'm curious why Russia didn't legalize Bitcoin mining soon after the war started. Btw this is a message and a warning for the rest of the world, the message is that Bitcoin is part of the modern financial system and it can't be abandoned or left without attention. Doesn't matter if any country wants it or doesn't want, they are forced to accept Bitcoin and keep their attention on it.
Who could imagine a few years ago if we would see such a picture? Lots of interesting events are going to happen soon. Just get your popcorn and watch the show and hold some Bitcoins too.

I don't think Russia accepting cryptocurrency payments or allowing domestic bitcoin mining is intended to counter China's use of the yuan. The BRICS bloc has a common goal of reducing its dependence on the USD and then seeking to completely eliminate the USD from transactions within the bloc. And to do that, they need to have a common voice, join forces and agree with each other on the bloc's issues. Fighting and competing will not bring good results for the bloc and I think the co-founders of the bloc understand that better than anyone else. So I don't think Russia has that intention.

The members of the BRICS need to have a common motive though, while India has no future plan to regulate crypto and has kept a hefty tax on crypto, China does not allow bitcoin use and is illegal there.

Therefore this is a good news for my Russian co-members here but saying that this is from the BRICS bloc does not sound correct to me. All of them are not on the same page about crypto be it transactions/taxation/regulation or mining.

Things might change after one big nation has made a move, but only time can tell.

You're right because this is so obvious on tier reason for this, though am not blaming them for anything, but life keep teaching us lessons the hard way in other for us to always have an alternative.


This aspect will also determine on whether its going to be a good idea supported by the targeted investors and miners over there or not, but i wish on this that they make it fare for the people just as El-Salvador did.


Isn't it better for them to use bitcoin instead than looking for other means over this, i don't also see it a necessity for them to be comparing themself with China or its currency, they may be the same under BRICS but there are lots of differences among them competing each other alone couldn't solved.

I don’t know how much this will affect us price but regardless, it's obviously good news. Russia has cheap electricity & the more miners the have, the more decentralised the network is so I welcome this as good news.

It's true and was expected since their war invasion against Ukraine since 2022. They hoped that they don't have to do this but after more than 2 years, the war has yet ended and sanction against Russia increases with time. With this pressure on their economy, they have to find alternative ways move fund and avoid sanctions from Western countries.

I have very small hope that Russian government will care about their citizens and are ready to apply friendly tax policy on Bitcoin and cryptocurrency miners.

The problem with BRICS nations is that they don't have unity of purpose. Every one of them has an individual intention of joining the alliance. Maybe they do not have a single currency because China might be nursing the idea of making the Yuan the organisation's currency. Meanwhile, India and Russia might not be comfortable with the idea. China wants its currency to compete with the US dollar so it might not accept payments in Bitcoin.

Maybe we have started seeing the effect of the publicity the US elections is giving to Bitcoin. Donald Trump sees Bitcoin as the future of money and he wants the US to to stockpile enough. There is also a bill in Congress that seeks to mandate the US government to buy some amount of Bitcoin periodically. Maybe Russia also wants to start its policy of hodling Bitcoin.     

I think I saw this news somewhere outside the forum, but can't really remember where. This is a good news to Bitcoin community, which shows the adoption and open arms we've been glamoring for.

President Putin's move are sometimes unpredictable, but i think he must have put some policies in place to checkmate electricity consumption by those who will be going into mining, because I think electricity consumption must have been part of the reasons why some government frowns towards mining.

And again, are miners allowed to operate in any part of Russia freely without registration or licensed?, because I think some form of licensing might be imposed on those who want to open a large mining farm.


Yeah, I sometime read about them being among the top three in electricity generation. which I think we might be seeing lots of mining farms. But, I am interested in knowing if the legalization gives miners free hand to do their thing, or maybe licensing and regulations are involved.


India's action towards crypto is quite funny and same time disappointing. Though, I don't live there, but I know for sure that large number of their citizens gets themselves involve in crypto related matters as an alternative to surviving hardship. As for China, they've stand on their words on crypto, but some of us here will be looking forward to the day where they will be forced to make a U turn.

You can't fully understand why the Russian's are doing what they are doing in terms of advancing their crypto-currency activity.
Russia has always been interested in crypto even before there was a European sanction threat, and this is just one of those step in the right direction in terms of crypto-currency.

I don't think it will affect the price because who in their right mind would start a mining business in Russia right now? This is a country of uncertainties that's currently at war. It's also sanctioned so there's no way companies from abroad will move in to invest in mining farms. Maybe people from China would want to try, but there's always a risk that you'll build a mine and a few weeks later it will get hit by a drone.

This news is good for the future of bitcoin, but of course there is absolutely no point if we don't save bitcoin. The world is changing so fast and European countries and big businesses will consider adopting bitcoin as a means of payment, so of course it would be a shame if we ignore bitcoin in our investment portfolio.

Apart from the legalization of Russian bitcoin mining, I also heard the news that the Ferrari car company has also adopted bitcoin as a means of payment. So far I have not been able to confirm that the news is true, but I will find the references to find out the truth.

Another feather added to the cap of the technology.

Its gradually coming through, no new revolutionary technology intertwined with finance was ever welcomed with open arms until it defies the very gang up against it.

We will see many more countries legalize Bitcoin in no distant time, it's either they accept it or they accept it, it can't be otherwise. There may be delays in adoption but not entirely shutting it out.

I don't know a single country in the world that had any real success in trying to ban anything related with bitcoin, that includes mining.
Russia could not really ban Bitcoin mining also, so they decided to legalize it and they will probably change big tax for everyone who is mining legally.

Pure game theory, US politicians getting pro bitcoin, Russia legalizing mining... we'll see about China. Let's forget about the price for a while and come back in some months, ignore the noise ;)

Or could it be it's because of this news that Bitcoin was able to crose back to the _$62k benchmark after it's recent far below $55k yesterday? Because I thought as much, however, this is a welcome development to have Russia, one of the biggest world power embrace Bitcoin as a currency generally accepted for transactions within it's jurisdiction and also making a provision for its mining is another wonderful idea, as that will really have a positive impacts on the general use of Bitcoin globally. Moreover, this is the best time to invest in Bitcoin, because with Russia current involvement in the mining system, its likely to influence its price positively.

I think they are trying to avert economic sanctions through transacting with virtual values like BTC perhaps the Russian government is trying to use Bitcoin since it's stronger than the US dollars and Kuwait Dinner to encourage the continuity of Russians in international business transactions, for instance, a Russian could buy goods and make payments using BTC from online shops that accepts BTC and send it to a friend in another country not been sanctioned like Russia and afterwards the friend could ware Bill it to him been the actual or initial purchaser in Russia, and again, BTC holders will surely attract customers,so Russian mining and holding substantial amounts of BTC will attract investors from many countries.

The news of Ferrari accepting bitcoin as a means of payment is not new. In October 2023, they will start accepting payments in BTC, ETH, and USDC but will be limited to the US market . Next, in July 2024, they also introduced cryptocurrency payments in the European market .
In general, the use of bitcoin as payment has been used by many large organizations and companies, but what we still do not know is how many orders are paid with bitcoin from those companies . So far they have only announced accepting bitcoin usage, they have not announced anything else .
As far as I remember , Honda also accepted bitcoin payments many years ago .

https://www.talkimg.com/images/2024/08/10/5BzX9.png
https://www.reuters.com/business/autos-transportation/ferrari-accept-crypto-payment-its-cars-us-2023-10-14/

https://www.ferrari.com/en-EN/corporate/articles/ferrari-extends-cryptocurrency-payments-to-european-dealers

If they only want to evade against the western sanctions, they only need to not ban Bitcoin. They never ban Bitcoin, so I don't see any reason they need to legalize mining.

I read that the income tax for non residents is high, it's 30%. (https://www.expatica.com/ru/finance/taxes/taxes-in-russia-104125/#non-residents)

Miners will not move to Russia they charge high taxes, I think this news had no impact at all.

I expect China will do nothing, they didn't get any sanction, instead many US manufactures are operated in China. If they want to accept Bitcoin, they would accept Bitcoin ETF instead.

Russia making the move to legalize Bitcoin mining doesn't mean that it's a BRICS decision or that any of BRICS countries are going to follow suit. Russia wants to support its economy in any ways it can, and unfortunately it decided to do so via Bitcoin mining. It's not good for Bitcoin to become associated with Russia like that. And it's especially bad that crypto mining will likely grow in Russia (unless avikz is right that high taxes will stop people) in light of the new law, while taxes from profits will go directly to fund Russia's war crimes in Ukraine.

According to Xinhua News, the Russian President has approved the bill of legalising of bitcoin and cryptocurrencies mining but the bill will be effected from November 2024 and only those people allowed to do minig who are registered with Russian Digital Development Ministry. It is a great news indeed for crypto world that real world accepting the importance of bitcoin and digital currencies.

I also don't think this decision has anything to do with BRICS as people think, it's just a decision that will have an impact within Russia's territory. Perhaps as you said they want to promote their economy in many different ways or they also want to compete for this market and do not want it to completely fall into the hands of the US.

But personally I don't think bitcoin mining in Russia is a bad thing. The fact that miners are evenly distributed across countries is a good thing instead of the majority of mining companies being too concentrated in the US and China.

Still on this same discussion matters, El-Salvador is bringing an idea to Russian for considering the use of bitcoin in performing it international trades, as it said that this decentralized digital currency will help them have a quick recovery over the impeding consequences over the instilled sanction, if they could imagine the first step taken by them when they adopt bitcoin as a legal tender and how its applying solution on different economic and financial aspect of their country, Russia may do same and see if it could also serve them the same role under a decentralized network in which they are also enjoying now https://cryptoslate.com/el-salvador-proposes-crypto-trade-with-russia-amid-sanctions-pushback/

BRICS will use their own monetary and financial system for money transmitter and they will avoid any risk of dependence on any network that can be affected or manipulated by Western countries. Bitcoin network is good but I believe that BRICS nations will not want to use this as it is still not under their control, they know this fact.

It's more related to geopolitical issues and it is part of their efforts especially from China and Russia to create a multi-polar world than a single polar world with dominant leadership from the USA.

Bitcoin mining is decentralized and after many years since 2009, it is no longer too centralized geographically in China. Nowadays with good decentralization of Bitcoin mining and hash rate globally, and in future more nations will join this profitable industry, we will have a more secure and decentralized Bitcoin network. With time, more decentralization of Bitcoin network, one nation like Russia, China or the USA. won't affect Bitcoin mining industry too much if they abruptly have big policy changes.

Decentralized from hash rate and nodes.
https://coin.dance/nodes
https://bitnodes.io/
https://buybitcoinworldwide.com/mining/by-country/
https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country

Alot Is going on in Russia as regards to bitcoin and it adoption, even though there have been war crimes, the country is indeed a center to many bitcoin mining and alot of other cryptocurrencies projects such as bitcoin mixing and other privacy enhancing development going on in that region.

When it comes to international trades and money movement, bitcoin serve that best purpose for Russia at this moment since their are suffering several sanctions, although this may just be my own speculations any ways.

Russia may not want to miss the opportunity to provide open space for Bitcoin mining in their country since they have areas with cold temperatures and abundant energy resources, it will be one of the investment destinations for global Bitcoin mining companies. This wise move by Russia can have an economic impact on them with the influx of investment and taxes from Bitcoin mining companies, and especially the US is unable to sanction them in this case since Bitcoin is decentralized.


But maybe specifically for China, they still can't fully accept Bitcoin in their country because they are quite protective and nationalistic about their currency and economy, so maybe Bitcoin still won't be fully accepted in China in the next few years. But maybe there is a change in that, although the possibility is small.

Unfortunately they were late in realizing it, but now it is much more because they should have done something like that to be one of the countries that adapted to satoshi's discovery, this mining is certainly good news for bitcoin and going forward it is certainly a clear vision for the future of bitcoin.

Speaking of China, I had a wild discussion with some wild people as analysts of the development of the bitcoin industry, they said that China will also unbaned bitcoin mining which they have strictly prohibited, but regarding the timing is still uncertain because it is only a thought, and in the future it will become more friendly again with bitcoin, maybe we just need to wait for the time.

For one, they need to find ways how to trade or move their funds internationally with limited options as they are sanctioned by a lot of governments around the world. So it is no surprise why they will be into crypto or btc. This is one good option for them for cross-border transactions or payments.

And with such move, of course, it is very favourable for bitcoin market. As this will create more demand. With the limited supply of bitcoin, we all know that the demand will further increase the value of this top coin. So we are not closing our doors to this kind of development, even if we say, it is Russia in play.

Yes, I also believe that they legalized Bitcoin only to earn extra income from the taxes. They don't really care that either someone is interested in Bitcoin mining or not but they mainly want to tax miners so they can earn economical profits. Let's see when they'll increase the taxes on those who mine Bitcoin in Russia.

Initially, they might not increase any taxes on the miners because they want miners to get peace of mine so the miners can expand their mining farms but once they get so many mining farms then they'll increase the taxes on those miners.

A very close friend of mine, who's a normie, sent me a message that Russia is going to start testing/using cryptocurrencies for international trade and settlements next week to go around U.S. sanctions? I don't believe it's true, but if Russia actually starts using crypto, that could be the inception of a global awareness of Bitcoin as some sort of breaker of political strongholds.

The enemies of Bitcoin will definitely have no choice but to accumulate it too. 8)

HODL!

It is in the news, the reports also say they are looking to create cryptocurrency exchanges too, i do not know if their plans will be successful, but they are set to start its trial on September 1st, so it means they are actually serious about it, so yeah.
I am not sure if that is a good type of awareness for BTC, or don't you think so.

Good or bad, I believe that will merely be a matter of personal opinion. But because of Bitcoin's technical design which makes it decentralized and censorship-resistant, its very nature is to be or will always be as a breaker/weakener of political strongholds. Satoshi might not have intended that to be in Bitcoin's path, BUT maybe he also did? Because why take all of those extra-careful measures to hide his/her real identity. 8)

If that happens, I have no doubt that El Salvador will draw even more attention to itself, because the US can hardly sanction China or India because they trade with a country that is under sanctions, but some small country could be an easy target for them. I honestly don't understand why Bukele has such a preference for countries like Russia, and at the same time uses the US dollar as its national currency.

However, the very idea of ​​trading using Bitcoin does not mean much if most countries in the world do not want to trade with a country that is under sanctions.

That is one thing i was asking myself earlier today, if countries and foreign businesses do not want to trade with Russia, how does BTC give them an advantage and how does it help them circumvent sanctions. Except there are many countries and foreign businesses that want to trade with Russia and their companies, but they cannot due to sanctions and the requirement of a third party, i.e.SWIFT, that has removed a lot of Russian banks from their system, so now they can use BTC to settle the trade without any third party involvement.

@Z-tight, the one who wants will always find a way, regardless of what sanctions you put him under. Russia finds a way to buy what it needs, because if the group of countries that support sanctions do not trade directly with Russia, they trade with China or some other country, which sells the same products to Russia. This is why sanctions are quite ineffective even after they last for years.

What makes cryptocurrencies (not all, of course) attractive is that if a transaction is made from non-custodial to non-custodial wallet, then no one can prevent the same transaction or freeze such funds. It therefore seems more logical to me that someone who wants to avoid transparency does not use BTC but some of the so-called private coins.

Russia's permitting the mining of bitcoin in recent times has to be for a reason, because they have not really permitted this in a long while as its been in an embattlement and and has gone through a lot of process, this will help bitcoin gain more popularity around the world and also increase the acceptability of bitcoin, this will also increase the trade volume of bitcoin which will also increase the amount of those who would want to further invest in bitcoin which will in turn lead to the increase in the volatility and value of bitcoin.

Bitcoin mining is legal in other countries as well but not completely, there are many countries you can google it where bitcoin minig is legal in one state and illegal in other states. As Russia is among biggest economies of the world this news will have great impact. Let see when countries like US and China start accepting it as payment mode and allow their citizens to have complete access to bitcoin.

Well it’s about time, very late to the party! I am not so sure why Russia hasn’t embraced Bitcoin considering their territory and the Ukraine are so welcome to ransomware criminals and they don’t press charges on them or send them to other countries that have those groups and individuals on their most wanted list. Maybe it’s a front because instead of mining it they would rather hack and steal it though the exfiltration and extortion of corporate data over the world. It’s a huge industry and insurance carriers issue cyber policies that protect and pay out on ransomware. I’m just speculating here but honestly I think I’m on to something lmao….

I must confess that I am coming across this news for the very first time here, and it's a goodnews regardless, the world government have studied, and have come to terms with the importance of bitcoin adoption to our system, but several of them are still hesitant to announce their acceptance and legalization of the asset due to fear of criticism from the general public owning or due to how they  (the government) have criticized and fought against the usage and growth of bitcoin, they know that the fiat system have failed woefully, but they can bring themselves to accept it because fiat Is their own creation, and with their own hands, they have destroyed it.

Going forward, I expect more and more countries to gradually begin to key in their economy towards bitcoin and cryptocurrencies,  the adoption of bitcoin won't happen overnight, but a time is coming when every country will have no choice but declare bitcoin legal and acceptable for both local and international transactions the respective countries.

Russia has already imposed a ban on crypto as a legal tender in Russia and has no uplifted it yet.
They have just allowed crypto to be used for cross border payments to get around the US sanctions.
Yes, it would be interesting to see how the miners are taxed now that they have allowed mining in Russia.

If we look at its competitor, the US, which is busy taking care of the presidential candidate campaign and crypto regulations there, still waiting for Trump's victory, then Russia is trying to get involved in the Bitcoin mining industry early. Russia's move does not want to be outdone in terms of policies that will benefit them in the future. This is good news for those who are getting out of the dollar circle as they have done with Brics. The message that must be emphasized for us in the future is not to hesitate to collect more bitcoins, because when countries start to look at it, it means that the existence of bitcoin really plays a role in modern finance. We must not be silent when they are already moving.

So, Russia decides to legalize Bitcoin mining. Big news, right? This is bigger than just some regulatory update. On world events, this is a power play. Consider that. They are adopting Bitcoin mining and using cryptocurrencies for foreign negotiations. They are saying, "We're not just playing by your rules anymore, we're making our own."

Folks, this is a major deal. It concerns more than only wealth. It is about authority, impact, control. Russia's embracing Bitcoin is a statement of openness for commerce but on terms. They are betting on decentralisation, on blockchain, on a time when the old guidelines have no bearing.

One could argue either this is a benefit or a drawback. One thing is definite though: its revolutionary. It might produce fresh divisions and strife or a more democratic, open financial system. Still, thats a bold action.

I don't believe that Russia with its dictator ruler cares about BTC, decentralization or even the blockchain, they are only taking decisions that benefits them and one that would help them evade sanctions. The miners that are going to mine from China will be under strong government surveillance, i would not be surprised if the Russian government would try to blacklist addresses using miners mining from their region. In short, it is hard to be excited about any news coming out of Russia, for obvious reasons.

In US Bitcoin is legal and if anyone want they can accept it but it's not made into a legal tender and highly unlikely to be. In China only God knows the status cause they banned Bitcoin multiple times and unbanned it multiple times.

Russia didn't made it as legal tender but they imposed ban on mining operations now they lifted it so miners are free to operate and this is indirect way of saying they are going to accumulate as much Bitcoin as they can before it becomes too scarce because they know they have hard time dealing with cross border payments and Bitcoin can help them with it.