On November 1, 2024, a bill on the legalization of mining will come into force. Previously, cryptocurrency mining activities were not regulated in any way. It is expected that the innovations will help businesses to bypass sanctions and affect the development of exports of high-tech equipment.

Who is allowed to engage in mining?

In order to mine legally, companies (legal entities and sole proprietorships) need to join a special register of the Ministry of Communications of Russia. Individuals will be able to mine cryptocurrency without registering in the new register, but will be restricted in their electricity consumption.

The bill does not say whether there will be restrictions on the taxation system, number of employees, or revenue.

Who is prohibited from mining?

The Ministry of Communications will refuse businesses if the business owners or CEO have a criminal record in the economic sphere, for extremism, or terrorism.

It is also forbidden to mine for companies that transmit, produce, buy or sell electricity. Individual regions of Russia may have their own restrictions.

Mining and international trade

It is planned to conduct an experiment with the use of cryptocurrency in foreign trade. That is, cryptocurrency will be used to pay for goods, services, or intellectual property under foreign economic contracts. We can also expect the creation of a cryptocurrency exchange based on the National Payment System (NPS).

The details of this program have not yet been prepared, but judging by the Central Bank’s plans, experiments with payments should take place before the end of the year.

Reporting

Miners will be obliged to hand over to the authorized body information about wallets and the amount of cryptocurrency received.

Unanswered questions

The bills do not answer a number of practical questions. For example:

• What electricity consumption limits will be set?
• How does one register in the registry?
• How are activities to be reported?
• What taxes must be paid?

We should expect a number of amendments and clarifications in the near future.

What is prohibited?

1. You cannot advertise cryptocurrency and the organization of its circulation.
2. According to the law on digital financial assets, it is prohibited to pay with cryptocurrency and accept it for goods and services. But it is allowed to buy and sell cryptocurrency itself — it is equal to property. If the experiment with the use of cryptocurrency in foreign trade is successful, we can expect changes on this point.

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