Russian President Vladimir Putin has signed a new law officially legalizing cryptocurrency mining across the country. The legislation, set to take effect in November 2024, establishes a comprehensive framework for the mining and regulation of digital currencies, marking a major milestone in Russia’s approach to the digital economy.

The new law introduces critical definitions and rules governing the mining industry, including the creation of a registry for legal entities and individual entrepreneurs authorized to mine cryptocurrencies. Notably, small-scale miners operating within government-set energy consumption limits can engage in mining activities without the need for formal registration. This approach aims to regulate large-scale operations while still allowing individual participation​.

Oversight of the cryptocurrency mining sector will be divided among various government bodies, including the Bank of Russia, the Ministry of Finance, and other state agencies. These entities will be responsible for developing specific regulations and ensuring that the mining industry adheres to national security and economic stability objectives.

The legislation also introduces measures to control the circulation of digital currencies within Russia, particularly focusing on preventing illegal activities such as money laundering. The Central Bank retains the authority to restrict the issuance of certain digital assets if they are deemed a threat to financial stability. Additionally, foreign digital financial assets will be permitted to trade on Russian blockchain platforms, although they will be subject to stringent regulations.

This move aligns with Russia’s broader strategy to reduce reliance on the U.S. dollar in international trade, particularly within the BRICS economic bloc, which includes Brazil, Russia, India, China, and South Africa.

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