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Russia has taken a significant step towards asserting greater control over the cryptocurrency market. A newly enacted law empowers the state to impose regional restrictions, tighten regulations on crypto infrastructure, and intensify transaction monitoring. This development marks a pivotal moment in Russia’s evolving stance on digital assets.
Russia Tightens Grip on Crypto Mining
Russia has further cemented its regulatory stance on cryptocurrency, with a new law signed by President Vladimir Putin expanding government oversight over digital currency mining activities and infrastructure.
Effective November 1st, the legislation introduces a series of measures aimed at strengthening state control over mining operations. Regional authorities are now empowered to impose restrictions on mining activities based on local needs, including outright bans on mining pools in certain areas. Additionally, the government will have the authority to regulate infrastructure providers supporting mining operations.
Source: create.vista.com
The law also expands the scope of entities with access to digital currency identifier addresses. Beyond the Federal Financial Monitoring Service (Rosfinmonitoring), federal executive agencies and law enforcement will now be able to track transactions linked to potential illicit activities such as money laundering and terrorist financing.
To streamline the regulatory framework, the Federal Tax Service has assumed responsibility for the national mining register. Businesses involved in mining must now register with the tax service, while individual miners are subject to specific electricity consumption limits.
Russia’s approach to cryptocurrencies is multifaceted. While the country has legalized crypto mining and permitted its use in international trade as a means to circumvent sanctions, it is also actively developing its own state-backed digital currency, the digital ruble. The recent legislation enabling experimental frameworks for cross-border crypto transactions underscores Russia’s strategic intent to leverage digital assets to strengthen its economic and geopolitical position.
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