The State Duma of the Russian Federation has recently approved a noteworthy bill concerning the regulation of cryptocurrency mining. This legislation, scheduled to be enforced from September 1, 2024, is aimed at outlining and managing various aspects of cryptocurrency mining within the nation.
Key Highlights of the Legislation
The bill introduces key terms such as "mining," "mining pool," "mining infrastructure operator," and "organization of digital currency circulation." It sets out specific guidelines for different entities engaged in mining activities:
- Russian Legal Entities and Entrepreneurs: Entities listed in the relevant register are allowed to participate in mining directly.
- Individuals: Individuals can engage in cryptocurrency mining without registration, provided they adhere to specified energy consumption limits.
- Mining Infrastructure Operators: An exclusive register under the Ministry of Digital Development will oversee the operations of these operators.
- Regulatory Oversight: The government, in collaboration with the Central Bank of the Russian Federation, will define particular requirements for miners. Roskomnadzor will be responsible for monitoring compliance.
Significantly, the bill prohibits the amalgamation of cryptocurrency mining with activities in the electric power sector. It mandates miners to report to the tax service the locations where they deposit coins and empowers the government to restrict mining activities in designated regions.
Miners and mining pools are obliged to sell cryptocurrencies independently and without utilizing Russian infrastructure. Furthermore, the legislation restricts the advertisement of digital currencies and mining services to safeguard citizens from potential fraudulent activities.
Excluded Provisions from the Bill
Certain controversial provisions were eliminated before the second reading:
- Cryptocurrency Turnover: The clause prohibiting the organization of cryptocurrency turnover was removed, paving the way for the possible establishment of Russian exchanges and exchangers.
- Individual Mining Ban: The proposal to ban individual mining was discarded, with deputies expressing confidence in the current mechanisms to regulate illicit mining activities.
A bill adopted in its initial reading by the State Duma on July 24, as reported by Unlock Blockchain, signifies a significant milestone in the regulation of cryptocurrency mining in Russia, a prominent player in global cryptocurrency mining.
