Russian President Vladimir Putin recently signed new laws to regulate cryptocurrency mining in Russia. These laws create a framework for mining operations, yet experts warn they don’t fully “legalize” the industry. Instead, the legislation sets controls and restrictions.
The first law, signed in August, defined terms like mining and mining pools and imposed requirements on registration and reporting for mining businesses. It also bans foreign entities from mining in Russia and gives the government the power to restrict mining in certain regions.
The second law, signed on October 25 and effective November 1, 2024, regulates mining and sets rules for digital currency use. Some key provisions will be enforced starting in March 2025.
According to Nikita Zuborev, chief analyst at BestChange, “No clear regulations are introduced.” Instead, these laws set groundwork for taxing industrial mining more precisely but fall short of full legalization.
The framework outlines company and regulatory responsibilities, covering energy standards and tax rules. However, details like specific tax amounts and power restrictions are left to future ministry regulations. Previously, miners paid based on hosting rates; now, taxes may relate to the mined amount.
Attorney Maria Agranovskaya added that while the new laws clarify terminology, Russia’s largest mining companies were already operating legally. She noted that mining is no longer in the “gray area,” as regulations bring more clarity to the sector.
Legal expert Anna Maximenko pointed out that, before these laws, miners had both freedom and operational challenges in the absence of regulation. With these laws, mining restrictions and prohibitions apply: foreign entities cannot mine, and those involved in the energy sector are also prohibited.
The government can also ban mining in areas with limited power supply, likely to include the Far East, South-West Siberia, and parts of southern Russia.
The legislation bans public advertising for crypto-related services, stating that “in the Russian Federation, it is prohibited to offer digital currency to an unlimited number of persons.” Yet, users can still buy, store, and sell cryptocurrencies, even though no registered crypto exchanges currently operate in Russia.
However, how to legally sell mined coins remains unclear. Legal pathways for selling mined assets were not covered in the recent legislation, though future regulatory acts may address this.
These laws build on Russia’s 2021 cryptocurrency law, which gave legal status to digital assets like Bitcoin but prohibited their use as payment.
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