Putin signs bill legalizing cryptocurrency mining in Russia into law
MOSCOW. Aug 8 (Interfax) - Russian President Vladimir Putin has signed into law a bill legalizing cryptocurrency mining in Russia from November 1, 2024.
The document is published on the website for official publication of regulatory acts.
The law provides definitions for such terms as (cryptocurrency) mining, mining pool, and mining infrastructure operator.
In particular, the law proposes defining the activity of (cryptocurrency) mining as the activity of conducting mathematical calculations by means of operating technical means for making records in an information system that uses, in particular, distributed registry technology for issuing digital currency, or receiving remuneration in digital currency for confirming records in the information system by a person involved in such activity.
Requirements regulating the activities of individuals and legal entities engaged in the mining of digital currency will be set by the Russian government in coordination with the Bank of Russia. The government will have the power to ban cryptocurrency mining in certain Russian regions.
"Legal entities and individual entrepreneurs are prohibited from combining the mining of digital currency with any activities dealing with the transmission of electric power energy or operational/dispatching management in the electric power industry, or any production or purchase/sale of power energy," the law says.
Legal entities and individual entrepreneurs who will carry out cryptocurrency mining activities, and mining infrastructure operators will need to be added to a special register maintained by the Russian Ministry for Digital Technology, Communication and Mass Media. This new rule will not affect citizens who are not individual entrepreneurs and who are involved in cryptocurrency mining if the power energy consumed by such persons while mining cryptocurrency does not exceed limits set by the government. Persons mining digital currency will have to provide information about the obtained currency and identifier addresses to Russia's Federal Financial Monitoring Service.
A clarification has been added to the clause prohibiting any use of digital currencies for financial settlements in Russia to stipulate that this rule will not apply to any currency mined by Russian cryptocurrency miners.
The law on mining imposes a ban on any public offering of cryptocurrencies. "In the Russian Federation, it is banned to offer any digital currency or any goods (works, services) for organizing or facilitating the circulation of a digital currency to an unlimited range of persons," the law says.
It also introduces a ban on any digital currency advertising, including advertising of any goods (works, services) for organizing or facilitating the circulation of a digital currency.
The signed law on cryptocurrency mining also includes a clause that deals with digital financial assets.
The bill also allows for any digital financial assets based abroad to be traded on Russian blockchain platforms. The Bank of Russia will have the right to ban any placement of individual issues once it reads them as a threat to financial stability.
The regulator will be entitled to set additional requirements for foreign digital rights that may be placed in Russian systems. The Central Bank will also be entitled to set requirements for persons who may acquire foreign digital financial assets, while the law clearly prohibits their acquisition by individuals who are Russian citizens without the regulator's authorization.
The law also simplifies the integration of Russian digital financial assets with foreign systems in the similar manner.
Russian operators issuing digital financial assets must specify in their rules the possibility of accounting and circulation of assets in an information system that was organized not in compliance with Russian law.
This law will take effect in ten days after its official publication.