Russia’s State Duma has passed two major crypto-related laws. The first law, starting on November 1, 2024, legalizes cryptocurrency mining in Russia. It allows only registered legal entities and individual entrepreneurs with the Ministry of Digital Development to engage in mining. Unregistered individuals can operate mining rigs, but only within specific energy consumption limits. Oversight will involve various institutions, with the Bank of Russia holding significant regulatory power.
- The cabinet of ministers will set the requirements for mining infrastructure operators. The Russian government, in coordination with the Bank of Russia, will establish additional requirements, including those for mining pool participants.
- Miners must report the digital currencies obtained through mining to a designated government body. The Bank of Russia and the authorized body can impose bans or restrictions on digital currency transactions to ensure monetary stability.
- The law also bans advertising cryptocurrencies and offering them to the public.
The second law, effective September 1, 2024, creates a special experimental regime. This regime allows the Bank of Russia to authorize companies to conduct cross-border settlements and exchange trading in digital currencies. Companies, exchanges, and crypto entities must apply to the central bank to participate. Anti Danilevski, CEO of Kick Ecosystem, explained that the Bank of Russia will carry out experiments related to using cryptocurrency for foreign trade, exchange trading, and creating an electronic platform for crypto operations based on the National Payment System (NPS).
