Russia Tightens Crypto Mining Controls and Expands Digital Ruble Plans Under New Law
On Friday, the Russian government unveiled a sweeping legislative update on cryptocurrency regulation, as detailed in a law signed by President Vladimir Putin. This law, effective November 1, introduces stricter controls over cryptocurrency mining and infrastructure, granting authorities greater regional power over these operations.
Under the new amendments, Russia’s government can implement regional restrictions on mining, adjusting permissions based on local circumstances. This includes the right to halt digital currency mining pools in designated areas and set protocols for limiting or banning mining activities altogether. Additionally, federal oversight now extends to providers supporting mining infrastructure, allowing for tighter control over resources used in crypto operations.
The legislation also expands access to digital currency tracking tools across multiple federal agencies, including law enforcement, to enhance monitoring of transactions potentially linked to money laundering or terrorist financing. Previously, this access was limited to the Federal Financial Monitoring Service (Rosfinmonitoring), but it now includes federal executive branches, bolstering cross-agency transparency.
In an administrative shift, oversight of the national mining register moves from the Ministry of Digital Development to the Federal Tax Service. This agency will now manage mining registrations, overseeing business compliance and disqualifying entities with repeat violations. Notably, while independent miners may continue without formal registration if they stay within set electricity limits, companies and individual entrepreneurs are subject to new registration criteria.
Russia's broader cryptocurrency strategy includes developing the digital ruble and exploring crypto's role in international trade. By legalizing crypto mining and facilitating cross-border digital currency transactions, the government aims to reduce reliance on the U.S. dollar, providing alternatives for sanctioned financial exchanges. An August law created a framework for cross-border cryptocurrency transactions, granting oversight to the Bank of Russia and involving the Finance Ministry, Federal Security Service, and Rosfinmonitoring in regulatory approvals for pilot projects.
These developments reflect Russia’s dual approach: intensifying regulation within its borders while expanding crypto’s role in foreign trade.