Russia’s new law, signed by Putin, expands cryptocurrency regulations, enhancing oversight of mining activities and establishing regional restrictions starting November 1st.
The Russian government released a document on Friday outlining a new law signed by President Vladimir Putin. This legislation significantly expands digital currency regulations. It broadens government oversight of cryptocurrency mining activities and related infrastructure nationwide.
The law will come into force on November 1st. It has several changes to enhance supervision. Consequently, it helps the government restrict mining depending on the specific region’s needs. For instance, the law empowers the authorities to regulate mining by area. This implies that procedures to be followed when banning mining operations can now be enumerated.
One provision empowers the government to cease mining pools of digital currencies in some regions. In the same way, the government can regulate the infrastructure providers in the mining business. This oversight is important since it helps keep a keen eye on every aspect of crypto mining.
Russia Advances Crypto Regulations Amid Push for Digital Ruble
The new amendments increase the opportunity to obtain digital currency identifier addresses. Before, only the Federal Financial Monitoring Service (Rosfinmonitoring) had such an opportunity. Now, more than one federal agency and police can monitor transactions associated with money laundering or terrorist financing activities. This increases the government’s chances of fighting any unlawful activities affecting cryptocurrency.
Besides, there has been a change of guard in the responsibility of maintaining the national mining register. Business mining registrations will now be under the Federal Tax Service. This agency can also eject businesses with several violations. Although single miners can work without registration, they are limited by how much electric energy they can use. On the other hand, the new registration requirements apply to companies and individual entrepreneurs.
Russia’s approach to digital currencies is the same as Russia’s strategy. The country is working on improving crypto laws and creating its own Central Bank Digital Currency, the digital ruble. It has legalized crypto mining and adopted cryptocurrencies in cross-border transactions. These steps are intended to bypass sanctions and decrease the use of the U.S. dollar in foreign exchanges.
In August, Putin signed a law allowing the testing of cryptocurrencies in foreign operations. This law provides a legal basis for modifying cross-border cryptocurrency transactions. The Bank of Russia oversees pilot projects, requiring approvals from the Finance Ministry, Federal Security Service, and Rosfinmonitoring. In this way, Russia is positioning itself to effectively navigate the evolving landscape of digital currencies.
