Russia Implements Crypto Law to Tighten Bitcoin Mining Control

• The new law enables Russia to restrict Bitcoin mining and bolster control over digital currency activities.
• The Federal Tax Service now manages Russia’s mining registry, tightening oversight on registered mining entities.
• Broader access to crypto identifiers expands government oversight, aiming to curb money laundering activities.

Russia has enacted new legislation to gain increased control over cryptocurrency mining within the nation. This new law, effective November 1, allows the government to impose restrictions on mining activities in specific regions. The Federal Tax Service (FTS) will now oversee the registry of crypto miners, previously managed by the Ministry of Digital Development. This shift aims to establish tighter regulatory oversight as Russia advances its stance on digital currency governance.

Enhanced Powers for Mining Control

Under the new law, the Russian government now has authority to manage critical operational areas of the digital mining sector. This power extends to restricting mining infrastructure access where necessary, marking a significant change from previous regulations, which merely obligated compliance. The law also broadens access to crypto identifiers, enabling executive agencies like enforcement and investigative bodies to track crypto transactions. This increased oversight aims to minimize the risks of illegal activities, including money laundering.

Expanded Registry Oversight by FTS

The FTS is now responsible for managing Russia’s mining registry, marking a shift from the Ministry of Digital Development’s previous role. According to the law, individual miners can operate without registration, provided they stay within set electricity usage limits. However, registered businesses are mandated to register their mining activities with the FTS to remain legally compliant. This change allows the FTS to more effectively track and regulate mining entities, creating a more structured environment for crypto mining within the country.

Crypto and Economic Strategy: Larger Implications

This legislation forms part of a broader Russian strategy to incorporate digital currencies into its economic framework. Following the legalization of large-scale mining earlier this year, registered entities can now participate in mining activities while complying with regulatory requirements. Russia’s strengthened stance on cryptocurrency follows international moves to adapt digital currencies as strategic assets.

Additionally, the country is trialing cryptocurrency transactions in international payments under the supervision of the Bank of Russia. President Vladimir Putin has indicated a growing interest in digital currencies as viable investment tools within BRICS, emphasizing Russia’s aim to reduce its dependency on the U.S. dollar. These steps underscore Russia’s calculated approach toward creating a structured digital economy that aligns with national interests while managing related risks.