Russia Releases New Crypto Regulations to Expand Oversight of Crypto Mining Activities and Infrastructure

BlockBeats news, October 27, according to News.Bitcoin, the Russian government released a document on Friday detailing a law signed by President Vladimir Putin to expand the scope of digital currency regulation. The new law significantly expands government supervision of cryptocurrency mining activities and related infrastructure across the country. The legislation, which came into effect on November 1, aims to strengthen supervision and impose restrictions on cryptocurrency mining activities based on regional needs. The Russian government will be able to implement mining restrictions by location and stipulate specific procedures and circumstances for prohibiting mining operations, giving the government the power to prevent digital currency mining pools from operating in certain regions. In addition, the government now has the power to regulate infrastructure providers that support mining operations.

The legislation also grants access to digital currency identifier addresses to multiple federal agencies outside of the Russian Federal Financial Supervision Service (Rosfinmonitoring), including federal executive agencies and law enforcement agencies, enhancing their ability to track transactions that may be related to money laundering or terrorist financing activities.

In terms of digital currency, Russia is advancing cryptocurrency regulation and developing a state-backed digital currency, the digital ruble. The country has legalized cryptocurrency mining and allowed the use of cryptocurrencies in international trade, aiming to bypass sanctions and reduce reliance on U.S. dollar foreign exchange. Putin signed legislation in August to allow an experimental framework for the use of cryptocurrencies in international transactions. The law allows for legal adjustments to cross-border crypto transactions, puts the pilot project under the supervision of the Central Bank of Russia and requires approval from the Ministry of Finance, the Federal Security Service and the Russian Federal Financial Supervision Service (Rosfinmonitoring).