Russia Legalises Cryptocurrency Mining and Payments for International Trade

New Regulations for Mining

Russia’s State Duma has passed a bill legalising cryptocurrency mining.

Previously, mining activities were conducted informally.

The new regulations restrict large-scale mining to legal entities and registered individual entrepreneurs.

Ordinary citizens may mine as long as their energy usage remains low.

The Ministry of Digital Development will oversee compliance, and mining could be banned in areas facing energy shortages.

Crypto Payments for International Trade

The new law permits cryptocurrency payments for international trade.

This move aims to help Russia navigate challenges posed by international sanctions.

Russia can now trade with countries like China, India, the UAE, and Turkey using cryptocurrency.

However, cryptocurrencies cannot be used for domestic transactions within Russia.

The legislation prohibits the circulation and advertising of cryptocurrencies within the country.

Reporting and Oversight

The bill introduces strict reporting requirements for miners.

They must report their cryptocurrency earnings and provide transaction records.

Rosfinmonitoring will monitor and identify addresses linked to illicit activities.

Impact on the Industry

This law is expected to foster growth in Russia’s crypto industry.

It aims to boost investment and job creation.

Russian miners reportedly produced about 54,000 bitcoins last year, valued at over $3.5 billion.

The law seeks to make cryptocurrency a significant export for Russia.

With mining consuming around 1.5% of the country's total electricity, the new framework will regulate this sector.

The regulations will come into effect on 1st September this year.

The bill’s restrictive measures on domestic cryptocurrency usage and stringent reporting requirements may limit the immediate benefits for the broader Russian public and could face implementation challenges.