Vladimir Putin makes an unexpected turn towards crypto, signing legislation strengthening control over mining. This decision, far from delighting bitcoin enthusiasts, could disrupt the financial revenue hoped for in times of economic crisis. The new rules impose increased supervision of the sector, limiting operations to registered entities and introducing regional restrictions. Russia appears to want to balance national security and economic stability by regulating crypto mining.
Russia tightens rules on crypto mining
The new legislation signs a considerable strengthening of regulation on Bitcoin mining in Russia. Now only registered companies and individual entrepreneurs can officially carry out mining activities. Exit the little players : the government is no longer joking.
This law gives the State the power to terminate operations of certain mining poolsthese groups of miners who collaborate to maximize their profits.
A measure intended, according to Moscow, to fight against money laundering and terrorist financingtwo threats associated with unregulated crypto transactions.
Moreover, miners will have to declare their income and assets in digital currencies to Rosfinmonitoringthe Russian financial supervisory agency. This new obligation allows the authorities to haveoverview of the crypto ecosystem and ensure compliance with local rules.
To top it off, the government reserves the right to restrict mining in regions where electricity consumption becomes problematic.
The new rules include:
- Mandatory registration for companies and entrepreneurs;
- Declaration of assets and income to Rosfinmonitoring;
- Power of the State to stop the operations of certain pools;
- Regional restrictions based on energy consumption.
An astute observer might say: “In Russia, we no longer mine in peace, we mine under the watchful eye of the state. »
When mining becomes a state affair
That's not all: the amendments to the law also redistribute responsibilities. The national mining register will no longer be managed by the Ministry of Digital Development, but by the Federal Tax Servicewhich will also take care of the sanctions for offenders.
Individual crypto miners can continue without registering, but provided they respect the energy consumption thresholds set by the authorities. The largest companies will have to comply with strict rules.
Despite this tough stance, the law introduces an interesting aspect: the ability to trade digital assetsincluding those issued abroad, on Russian crypto exchanges. An astonishing opening, but supervised by the Central Bankwhich keeps control of transactions deemed risky for the financial stability of the country.
Moreover, Russia, very close to an economic disaster, seeks to integrate cryptocurrencies into its financial systemin particular to circumvent international sanctions and reduce its dependence on the American dollar.
Finally, between Putin saying Stop Bitcoin mining in July and signing the legalization of mining in August, the Russians must be losing their minds.
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