New Law Signed to Regulate Cryptocurrency Mining

President Putin has signed a law regulating cryptocurrency mining in Russia. Amendments have been made to the laws “On Electric Power Industry” and “On Digital Financial Assets,” introducing stricter controls over mining activities and tightening the rules for cryptocurrency extraction in the country.

Key Provisions of the New Law

• The government now has the authority to ban cryptocurrency mining in specific regions and to determine the procedures and reasons for imposing such restrictions.
• Participation in mining pools—special groups where miners combine their computing power to mine digital currency—may be prohibited under certain circumstances.
• The Cabinet of Ministers can regulate the activities of operators providing mining infrastructure.
• The responsibility for maintaining the registry of miners is transferred to the Federal Tax Service (FTS), which was previously managed by the Ministry of Digital Development. Companies and individual entrepreneurs must be included in this registry. Private miners are not required to register, but they must strictly adhere to energy consumption limits.
• Individuals and entities earning cryptocurrency through mining are required to report their earnings in digital currency and the address identifiers used for transactions to the FTS. The FTS will share this information with Rosfinmonitoring and the Central Bank.
• Address identifiers will be accessible to federal executive authorities, the prosecutor’s office, and law enforcement agencies. Miners may be removed from the FTS registry for repeated violations of legal requirements within a year.

Effective Date

The new regulations will take effect on November 1 of this year.