Russia’s State Duma Passes Two Crypto-Related Laws, Legalizing Mining and Cross-Border Settlements
In a groundbreaking move, Russia’s lower house of the Federal Assembly, the State Duma, has passed two crypto-related laws that are set to have a significant impact on the country’s digital currency landscape.
The first law, which will come into effect on November 1, 2024, fully legalizes cryptocurrency mining in Russia. This means that legal entities and individual entrepreneurs registered with the Ministry of Digital Development will be able to engage in mining activities. However, those who are not registered can still operate mining rigs as long as they do not exceed energy consumption limits.
Oversight over mining activities will be divided among different institutions, with the Bank of Russia having overarching powers. The cabinet of ministers will establish requirements for mining infrastructure operators, and other regulations will be approved by the Russian government in consultation with the central bank.
Miners will also be required to provide information about the digital currency they obtain through mining to a government-authorized body. Additionally, the authorized body and the central bank will have the authority to impose bans or restrictions on digital currency transactions to maintain Russia’s monetary stability.
In addition to legalizing mining, the first law also includes a ban on advertising cryptocurrencies and offering them to the general public.
The second law, which will take effect on September 1, 2024, establishes a special experimental regime that allows the Bank of Russia to authorize companies to conduct cross-border settlements and exchange trading in digital currency. Companies, exchanges, and other crypto entities will need to apply to the central bank to participate in this experimental regime.
According to Anti Danilevski, founder and CEO of Kick Ecosystem, the Bank of Russia will be able to conduct three experiments starting on September 1: using cryptocurrency for foreign trade settlements, conducting exchange trading in cryptocurrency, and creating an electronic platform for cryptocurrency operations based on the NPS.
These new laws mark a significant step forward for the regulation of digital currency in Russia and are likely to have far-reaching implications for the country’s crypto industry.