- Russia’s new law lets authorities restrict Bitcoin mining in specific regions, effective November 1.
- The Federal Tax Service now oversees Russia’s crypto mining registry, tightening rules on mining operations.
- Expanded access to digital currency identifiers enables broader oversight hence boosting anti-money laundering efforts.
Russia has implemented a new digital currency law aimed at increasing control over Bitcoin and other cryptocurrency mining activities. The new law is scheduled to come into force on November 1. It grants the Russian government authority to restrict digital currency mining in specific regions and details conditions for enforcing these restrictions.
Government Gains Expanded Powers in Mining Regulation
The new law empowers the government to regulate mining infrastructure operators. Previously, this regulation was an obligation. Under the regulation, the government has control over operational aspects of digital currency mining, allowing it to restrict access to mining infrastructure where needed.
Additionally, the legislation broadens access to digital currency identifier addresses. Previously only the Federal Financial Monitoring Service could access these identifiers. However, now all federal executive agencies, including investigative and enforcement agencies, can use them.
This expanded access is expected to enhance government oversight of crypto transactions. This will help combat activities linked to money laundering.
Revised Mining Registry Oversight for Miners
The Federal Tax Service (FTS) will now manage the miner’s registry, previously overseen by the Ministry of Digital Development. Under the new regulations, individuals can mine without registering, provided they stay within specified electricity limits. However, businesses must register with the FTS to mine legally. This registry allows the FTS to keep tabs on mining entities.
Broader Implications for Russia’s Crypto Strategy
This new regulation arrives as Russia has taken steps throughout the year to bring structure to its cryptocurrency sector. Earlier this year, crypto mining was legalized, allowing registered entities to participate in large-scale mining activities. The government’s latest moves reflect efforts to leverage digital currencies for economic purposes while managing potential risks tied to sanctions.
In August, Russia initiated trials for international crypto payments, supervised by the Bank of Russia. President Vladimir Putin has indicated interest in exploring digital currencies as investment tools within BRICS. This signals a shift towards reduced reliance on the US dollar in global transactions.
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