Russia has issued a regulatory measure on Bitcoin mining operations
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The new Russian law allows the government to ban digital currency mining in certain areas. Federal agencies can now access digital currency account addresses.
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The Russian government has introduced a new law regulating digital currency exchanges aimed at regulating bitcoin and crypto mining operations, Russian news agency TASS reported on Saturday.
To take effect on November 1, the law allows the Russian government to ban the issuance of digital currency in selected regions or territories. It also lists the conditions under which such restrictions may apply.
According to the new regulations, the government can control the activities of mining infrastructure operators, which is a change from the previous obligations to the current formal rights.
The law expands the scope of entities that can access digital currency account addresses. Previously limited to the Federal Financial Supervisory Service, now all federal executive agencies, including investigative and investigative agencies, have this ability.
The new law allows individuals to spend without registration if they stay within specific electricity consumption limits, while businesses must legally register.
The Federal Tax Service oversees the mining registry, which was previously managed by the Ministry of Digital Development. For repeated violations in a year, the Federal Tax Service can remove companies from the mining registry, prohibiting them from providing services to unregistered or unregistered entities.
The latest development comes after Russia legalized crypto mining earlier this year. The law allows Russian legal corporations to participate in large-scale crypto mining operations. Individuals can mine without registering if they comply with certain electricity consumption limits.
The Russian government is intensifying efforts to exploit the digital asset economy. Several developments have been made in the past few months to establish a regulatory framework for crypto mining and a cross-border crypto settlement and trading test system.
In late August, Moscow launched experiments to use crypto for international payments, managed by the Bank of Russia, to reduce the impact of sanctions.
Putin recently confirmed that the BRICS group, including Russia, will use digital currencies for investment. Members of the group want to reduce their dependence on the US dollar. Digital currencies can help achieve that goal, benefiting developing economies and their member countries.
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