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Russia expands crypto control with new state regulations

Russia expands crypto control with new state regulations

GrafaGrafa2024/10/28 20:37
By:Isaac Francis

Russia has introduced a new law that significantly increases state oversight of digital currency activities, expanding the government’s ability to regulate and monitor crypto mining and related infrastructure. 

The legislation, signed by President Vladimir Putin, will take effect on November 1 and includes multiple amendments to strengthen control over digital currency operations within the country. 

The new law grants the government authority to impose regional restrictions on crypto mining activities based on specific needs and circumstances. 

This includes the power to halt digital currency mining pools in designated areas and regulate infrastructure providers that support mining operations. 

The expanded regulations aim to address concerns over regional electricity consumption and environmental impact, allowing more localised governance of mining activities. 

The law also broadens access to digital currency identifier addresses for several federal agencies, including law enforcement bodies. 

Previously, only the Federal Financial Monitoring Service (Rosfinmonitoring) held this capability. 

This change is intended to enhance transaction monitoring and detect potential money laundering or terrorist financing activities linked to digital currencies. 

Another key aspect of the legislation involves transferring the responsibility for managing the national mining register from the Ministry of Digital Development to the Federal Tax Service. 

The Tax Service will now oversee the registration of mining businesses and has the authority to remove those with repeated violations. 

Individual miners, however, are exempt from registration if they operate within specific electricity usage limits. 

In recent developments, Russia has been advancing its digital currency policies, legalising crypto mining and permitting the use of cryptocurrencies in international trade. 

The nation is also moving forward with the development of a state-backed digital currency, the digital ruble. 

A recent law signed in August allows for experimental frameworks to facilitate crypto use in cross-border transactions, subject to oversight by the Bank of Russia and multiple federal agencies, including the Finance Ministry and Federal Security Service.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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