Russia Legalizes Crypto Mining and Implements Experimental Regime

Two important regulations pertaining to cryptocurrency have been approved by the State Duma of Russia, as reported by Ria Novosti and CoinDesk. These regulations represent a turning point for cryptocurrencies in Russia.

The first law makes mining cryptocurrencies lawful and goes into effect on November 1, 2024. Mining can be done by companies or by private individuals who have registered with the Ministry of Digital Development. Unregistered people, however, are only permitted to operate mining rigs as long as their energy usage stays below predetermined bounds.

Mining operations will be supervised by a number of organizations, with the Bank of Russia holding a major role. Operators of mining infrastructure will be subject to requirements set by the cabinet of ministers. The Russian government, along with the Bank of Russia, will establish further regulations, such as those for mining pool participants.

Miners must report the digital currency obtained from mining to a government-authorized body. This body and the central bank can introduce bans or restrictions on digital currency transactions to maintain Russia’s monetary stability. The law also bans advertising cryptocurrencies and offering them to the general public.

Experimental Regime for Cross-Border Settlements

The second law, effective September 1, 2024, introduces a special experimental regime. This regime grants the Bank of Russia the authority to permit authorized companies to conduct cross-border settlements and exchange trading in digital currency.

Anti Danilevski, founder and CEO of Kick Ecosystem, highlighted that companies, exchanges, and crypto entities must apply to the central bank to participate in this experimental regime.

“The Bank of Russia will be able to conduct not one, but three experiments from September 1 of this year: on the use of cryptocurrency for settlements in foreign trade, on the conduct of exchange trading in cryptocurrency, and on the creation of an electronic platform for operations with cryptocurrency based on the NPS,” a separate Ria Novosti report detailed.

This experimental regime aims to explore the potential of cryptocurrency in international trade and exchange trading, as well as the development of an electronic platform for crypto operations.

These legislative developments reflect Russia’s strategic approach to integrating cryptocurrency into its financial system while ensuring regulatory oversight and stability. The laws represent a significant step towards embracing digital currency within a structured and controlled framework, opening new avenues for the crypto industry in Russia.