State Authority Over Digital Currency Grows as Russia Publishes New Law
Table of Content
- Overview of New Digital Currency Law
- New Regulations and Restrictions on Mining Operations
- Advancements in Crypto Regulations
On Friday, the Russian government published a document detailing a new law signed by President Vladimir Putin, which expands the regulatory framework for digital currencies. This new legislation significantly increases government oversight of cryptocurrency mining operations and associated infrastructure across the nation.
Effect on November 1, the new legislation introduces several amendments aimed at enhancing oversight and placing-specific restrictions on mining activities. This law enables the Russian government the authority to impose location-based mining limitations and establish conditions for suspending mining operations. A notable provision allows the goverment to halt digital currency mining pools in designated areas. Moreover, the government now has the power to regulate infrastructure providers that supporting mining activities.
This legislation also broadens the scope of agencies with access to digital currency identifier addresses, extending beyond the Federal Financial Monitoring Service (Rosfinmonitoring) to include various federal executive and law enforcement bodies. Apparently, This expansion enhances their ability to monitor all the transactions potentially associated with money laundering or terrorist financing activities.
Russia has been progressing in its regulatory approach to digital currencies by advancing crypto regulations and introducing a state-backed digital currency, the digital ruble. The country has legalized crypto mining and sactioned the use of cryptocurrency use in international trade, aiming to circumvent sanctions and lesson dependence on the U.S. dollar inglobal transactions.
In August, president Putin enacted the legislation establishing experimental frameworks for cross-border cryptocurrency transactions, with oversight of pilot projects assigned to the Bank of Russia. According to the data, these project requires authorization from the Finance Ministery, Federal Security Service, and Rosfinmonitoring, allowing for legal adaptions in cross-border crypto use.
