Russia Tightens Cryptocurrency Regulations: New Law Grants Regional Control Over Crypto Mining and Expands Oversight
On Friday, Russia introduced comprehensive cryptocurrency regulations through a law signed by President Vladimir Putin, effective November 1. This new legislation imposes stricter controls on cryptocurrency mining, granting regional authorities greater control over mining operations and infrastructure management.
Under these updated rules, the Russian government can impose regional restrictions on cryptocurrency mining, adjusting permissions based on local needs and conditions. Authorities have the power to suspend mining activities in specific areas, restrict digital currency mining pools, and establish protocols to limit or prohibit mining altogether. Additionally, federal oversight now extends to providers supporting mining infrastructure, allowing tighter control over resources used in crypto operations.
The legislation also broadens access to digital currency tracking tools across multiple federal agencies, including law enforcement, to enhance oversight of transactions potentially linked to money laundering or terrorist financing. Previously limited to the Federal Financial Monitoring Service (Rosfinmonitoring), this access now includes other federal branches, supporting greater transparency across agencies.
A significant administrative change shifts the responsibility for the national mining register from the Ministry of Digital Development to the Federal Tax Service. This agency now manages mining registrations, oversees business compliance, and enforces penalties for repeat violations. While independent miners may continue operations without formal registration if they stay within electricity limits, companies and individual entrepreneurs are required to meet stricter registration criteria.
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Russia’s broader crypto strategy includes advancing the digital ruble and expanding cryptocurrency's role in international trade. By legalizing crypto mining and facilitating cross-border transactions, Russia aims to reduce dependence on the U.S. dollar and create alternatives for financial exchanges under sanctions. A law passed in August laid the groundwork for cross-border crypto transactions, with oversight from the Bank of Russia and involvement from the Finance Ministry, Federal Security Service, and Rosfinmonitoring for regulatory approvals in pilot projects.
This dual approach underscores Russia’s intensified regulation of crypto activities within its borders while leveraging digital currency to enhance its global trade presence.
