Russia Paves the Way for Crypto Mining Legalization and Experimental Regime

Exciting news has emerged from Russia as the State Duma, the lower house of the Federal Assembly, recently passed two significant crypto-related laws which will have far-reaching implications for the cryptocurrency industry in the country. These developments represent a significant step towards the regulation and legalization of crypto activities in Russia.

Legalization of Cryptocurrency Mining

One of the key laws that has been passed fully legalizes cryptocurrency mining in Russia, with the law set to come into effect from November 1, 2024. Under this new legislation, legal entities and individual entrepreneurs registered with the Ministry of Digital Development will have the green light to engage in mining activities. For those who are not registered, they may still operate mining rigs as long as they adhere to energy consumption limits.

Furthermore, oversight over mining activities will be distributed among various institutions, with the Bank of Russia appearing to hold overarching powers. The cabinet of ministers will establish specific requirements for mining infrastructure operators, with additional regulations for mining pool participants to be approved by the Russian government in conjunction with the Bank of Russia. Miners will also be required to disclose information to a government-authorized body regarding the digital currency they obtain through mining.

Experimental Regime for Cross-Border Settlements and Exchange Trading

In addition to legalizing crypto mining, Russia has introduced a special experimental regime, set to commence on September 1, 2024, which grants the Bank of Russia the authority to permit authorized companies to conduct cross-border settlements and exchange trading in digital currency. Companies, exchanges, and other crypto entities wishing to participate in this experimental regime will need to apply to the central bank for approval.

This experimental regime will enable the Bank of Russia to conduct experiments in three key areas: the use of cryptocurrency for settlements in foreign trade, exchange trading in cryptocurrency, and the creation of an electronic platform for cryptocurrency operations based on the National Payment System (NPS).

These new laws signal a progressive approach by Russia towards embracing and regulating the burgeoning crypto sector, providing clarity and legitimacy to crypto activities in the country while also creating opportunities for businesses and individuals to engage in this rapidly evolving industry.