Russia Legalizes Crypto Mining

Russia's State Duma passed a law to fully legalize cryptocurrency mining starting November 1, 2024.

What's the scoop?

• Legalization Perimeters: Only registered legal entities and individual entrepreneurs can engage in mining, while unregistered individuals must adhere to energy limits.
• Oversight and Regulation: The Bank of Russia will have significant control in overseeing mining, with the cabinet setting requirements for mining infrastructure operators, and additional requirements for mining pool participants will be established by the government in agreement with the Bank of Russia. Miners must report mined crypto to the government, which can restrict transactions for monetary stability.
• Advertising Ban: The new law also bans advertising cryptocurrencies and offering them to the public.
• Experimental Law for Cross-Border Settlements: A second law, effective September 1, 2024, introduces an experimental regime allowing the central bank to authorize selected companies, who must apply to the central bank, to conduct cross-border settlements and exchange trading in crypto. 

Bankless Take:

While this will surely give anti-crypto advocates fodder, Russia's legalization of crypto mining accompanies plenty of governments embracing crypto technologies. The experimentation of cross-border payments also shows a recognition of the power of crypto’s primary use case and a desire to place Russia on those highways.