Russia Approves Bitcoin Mining & Experimental Cross-Border Exchange Regime

The first law legalizes cryptocurrency mining in Russia starting November 1, 2024, permitting registered legal entities and individual entrepreneurs to mine, while unregistered individuals can only operate within certain energy consumption limits.

• Oversight of mining activities will be divided among various institutions, with the Bank of Russia holding primary authority. The cabinet of ministers will set requirements for mining infrastructure operators, while the Russian government, in agreement with the Bank of Russia, will approve additional requirements for mining pool participants.
• The authorized body and the central bank will also have the right to impose a ban or restrictions on digital currency transactions to "preserve Russia's monetary stability."
• Miners will also have to provide the government-authorized body with information about the digital currency acquired through mining. The law also imposes "a ban on advertising cryptocurrencies and offering them to an unlimited audience."

The second law, effective September 1, 2024, establishes an experimental regime allowing the Bank of Russia to permit authorized companies to conduct cross-border settlements and digital currency trading.

• Companies, exchanges, and crypto entities must apply to the central bank to participate in this regime.
• Under the new law, the central bank will also establish a experimental infrastructure for cryptocurrency payments, with details yet to be announced.
• Russian central bank Governor Elvira Nabiullina said that the first international cryptocurrency settlements are expected to take place before the end of the year.

Contrary to numerous reports, the new law will not lift an existing ban on bitcoin and 'crypto' payments inside Russia.

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