Russian President Putin signed a law on Thursday (August 8) legalizing cryptocurrency mining in the country.

The law has been published on the government website and will take effect 10 days after its publication.

The document pointed out that only Russian legal entities and individual entrepreneurs registered with the government have the right to mine. In addition, individuals who have not exceeded the government's energy consumption limit will also have the right to mine digital currency without registration.

According to the document, foreign digital financial assets are allowed to be traded on Russian blockchain platforms, but if the Central Bank of Russia finds that they pose a threat to Russian financial stability, it has the right to prohibit the issuance of individual encryption assets.

The supervision of the newly legalized cryptocurrency mining will be jointly responsible by the Central Bank of Russia, the Ministry of Finance, and specific departments of the Russian government, and the latter will formulate more precise regulatory requirements in the coming months.

Russian authorities are expected to take some measures to eliminate the possibility of using digital currencies for money laundering. In addition, the law will also ban large-scale cryptocurrency advertising in Russia.

When the news came out, Bitcoin rose more than 12% on Thursday, breaking the $0.06 million mark once again. At the time of publication, Bitcoin was trading at $60,888.

Last month, Putin discussed the introduction and use of digital currencies with the government at an economic conference.

Putin pointed out that this is a promising economic field, and Russia needs to "seize the opportunity," establish legal frameworks and regulations, develop infrastructure, and create conditions for the circulation of digital assets. This is very important.

Last month, the governor of the Central Bank of Russia, Elvira Nabiullina, also said that the Russian parliament will consider a law allowing international payments through cryptocurrencies.

Some analysts pointed out that Russia's legalization of cryptocurrency mining is an important sign of development in the field of digital currencies for BRICS countries.

At present, BRICS countries are increasingly seeking to reduce their dependence on the USD for international trade. The group first proposed the idea of alternative digital currencies at the 11th BRICS Leaders Annual Meeting held in 2019, which has attracted widespread attention but also faces major obstacles.

In 2023, Russia will focus again on developing a unified currency for BRICS countries. According to reports, Alexander Babakov, Deputy Speaker of the State Duma, claimed that the main members of the emerging economic group are working hard to develop a new currency for international trade settlements. Shortly after the statement was released, the Central Bank of Russia and the Russian government announced plans to establish special entities to use digital assets as a method of cross-border settlements.