Russia Legalizes Crypto Mining and Brings an Experimental Regime

Russia has passed a law legalizing cryptocurrency mining as of November 1, 2024.

A second experimental law was also passed that would allow the central bank to allow selected companies to conduct cross-border payments and exchange transactions with the digital currency.

Russia’s State Duma, the lower house of the Federal Assembly, passed two laws on cryptocurrencies on Tuesday, a Russia-based policy expert told CoinDesk and Ria Novosti.

The first law fully legalizes cryptocurrency mining in Russia from November 1, 2024. Legal entities and individual entrepreneurs registered with the Ministry of Digital Development can mine, while unregistered ones can operate mining equipment provided that they do not exceed energy consumption limits, Ria Novosti reported.

Control of mining operations will be shared among different institutions, with the Central Bank of Russia seen as having supreme authority.

The Cabinet of Ministers will independently determine the scope of requirements for the activities of mining infrastructure operators. Other requirements, including for mining pool participants, will be approved by the Russian government in agreement with the Bank of Russia, the report said.

Miners will also be required to provide information about the digital currency they obtain as a result of mining to the state-authorized institution.

The authorized body and the Central Bank will have the right to ban or restrict transactions with digital money in order to maintain Russia’s monetary stability.

This law also prohibits advertising cryptocurrencies and making them available to an unlimited number of people.

The second law, which will come into force on September 1, 2024, is a special experimental regulation that authorizes the Central Bank of Russia to allow authorized companies to conduct cross-border payments and exchange operations in digital currency.

Kick Ecosystem founder and CEO Anti Danilevsky said that companies, exchanges, and crypto assets will need to apply to the central bank to be part of this experimental regime.

“From September 1 of this year, the Central Bank of Russia will be able to conduct not one, but three experiments: the use of cryptocurrency for payments in foreign trade, conducting stock exchange trading with cryptocurrency, and creating an electronic platform for transactions with cryptocurrency based on the NPS,” Ria Novosti reported separately.

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