- New regulations will allow private mining under strict energy consumption guidelines, enhancing sustainability in the sector.
- The law strengthens oversight, requiring miners to report crypto amounts and wallet addresses to combat illegal activities.
Russia is poised to introduce regulatory measures in the cryptocurrency sector with a new crypto mining bill scheduled for discussion in Parliament on July 25th. This legislation aims to formalize crypto mining activities, ensuring they operate within legal confines and adhere to specific government standards.
The forthcoming bill mandates that crypto miners in Russia register their operations and declare the volume of cryptocurrencies mined. This requirement is part of a broader effort to bring transparency to the crypto mining industry, which has so far operated in a gray legal area.
Notably, the bill will also restrict the organization and promotion of crypto circulation starting September 1st, confining mining activities to entities and individuals who are officially registered under a new system overseen by the central bank.
Private miners will be allowed to continue their activities provided they comply with government standards on energy consumption. This move is seen as a way to prevent the excessive use of power in a sector known for its high energy demands.ย
Furthermore, the bill aims to prohibit all advertisements related to digital assets and restrict the organization of their circulation within the country, a measure likely designed to curb speculative trading and investment.
The enforcement of these regulations will be managed by the Ministry of Digital Development, which will ensure miners adhere to the established rules. This step is expected to prevent illegal activities such as money laundering and the financing of terrorism, as miners will be required to report their mined quantities and the wallets in which their crypto is stored.
The introduction of this bill comes at a crucial time for Russia as it faces extensive international sanctions following its actions in Ukraine. By regulating and possibly leveraging the cryptocurrency market, Russia seeks to mitigate some of the financial restrictions imposed by these sanctions.
Cryptocurrencies offer a potential alternative for facilitating transactions and preserving the liquidity of financial assets without relying on traditional and currently restricted financial systems.
