The introduction of the new Russian law enables the government to prohibit the extraction of digital currencies in designated regions.
Russian news agency TASS reported on Saturday that the Russian government has implemented a new law to regulate the turnover of digital currencies, with the objective of regulating Bitcoin and crypto mining activities.
Legislation that is scheduled to be implemented on November 1 will allow the Russian government to prohibit the extraction of digital currencies in specific regions or territories. It also defines the circumstances under which such prohibitions may be enforced.
The report stated that the government has the authority to regulate the activities of mining infrastructure operators under the new regulations, which represents a transition from previous obligations to a formalized right.
Digital currency identifier addresses are also accessible to a broader range of entities under the law. Before, this capability was exclusively available to the Federal Financial Monitoring Service. However, it is now available to all federal executive entities, including inquiry and investigative agencies.
The new law allows individuals to mine without registration as long as they adhere to specific electricity consumption limits, while enterprises are required to register in order to mine legally.
The Ministry of Digital Development previously administered the miner’s register, which will now be overseen by the Federal Tax Service. The Federal Tax Service has the authority to remove companies from the miner’s register and prevent them from providing services to unregistered or deregistered entities if they commit repeated infractions within a year.
Following the legalization of crypto mining in Russia earlier this year, the most recent development has occurred. The law permits Russian legal corporations to engage in large-scale crypto mining activities. Individuals may also mine without enrolling, provided that they comply with specific electricity consumption restrictions.
The Russian government is intensifying its efforts to leverage the digital asset economy. In the past few months, there have been a number of changes that have helped set up rules for crypto mining and a trial system for dealing and settling crypto across borders.
Moscow initiated experiments in late August to mitigate the effects of sanctions by utilizing cryptocurrency for international payments, which are regulated by the Bank of Russia.
Putin has recently confirmed that the BRICS group, which includes Russia, will investigate the potential of digital currencies for investment purposes. The group’s members aim to decrease their dependence on the US dollar. Digital currencies can assist them in accomplishing this objective, while also providing advantages to developing economies and their member countries.
Also Read: Arkham Intelligence Enhances Solana Blockchain Data
Wallets