Russia to Legalize Crypto Mining Effective November
Russia set to challenge the US as the leading crypto mining country with new legislation
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Russia’s State Duma, the lower house of the Federal Assembly, passed a bill legalizing cryptocurrency mining on Tuesday. If the Federal Assembly and President Putin approve it, the law will go into effect on Nov 1, 2024.
The new regulations will allow cryptocurrency mining for business entities and individual entrepreneurs registered under the Ministry of Digital Development, Communications, and Mass Media. To register, these entities must provide their wallet addresses for anti-money laundering and counter-terrorism compliance.
Anton Gorelkin, a co-author of the bill, stated, “We view cryptocurrencies as a tool for circumventing sanctions and as a point of high-tech exports. Today, Russia ranks second in mining, and I am confident that once regulation in this area is established, we will take first place, surpassing the USA.”
Notably, private individuals who mine cryptocurrencies within government-set energy limits won’t need to register.
The law acknowledges mining pools but requires their operators to adhere to Russian regulations, leaving some uncertainty about connecting to non-Russian pools.
The legislation also bans “electricity transmission, operational dispatch control in the energy sector, or the production and sale of electricity” for those involved in cryptocurrency mining.
Additional requirements for miners and mining pools will be set by the Russian government in coordination with the Bank of Russia. Regulators can also ban cryptocurrency mining in certain regions.
Violations, including mining without proper registration, could lead to “a reduction or complete disconnection of power”, with no refund of consumed energy, according to the bill.
The law also prohibits cryptocurrency-related advertising on any communication platform within Russia.
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