Russia establishes regulatory framework for cryptocurrency mining, without full legalisation

Russian President Vladimir Putin recently signed legislation establishing a regulatory framework for cryptocurrency mining, signalling new guidelines rather than full legalisation of the sector. The initial law, enacted in August, outlined key crypto terms and set requirements for miners to register and report their activities. It also restricts foreign entities from mining and allows the government to prohibit mining in areas with potential energy shortages.

On 25 October, a second law came into effect, introducing further mining rules and digital currency circulation guidelines, though key sections won’t be fully enforceable until March 2025. While the statutes address some legal uncertainties, analysts note they mostly lay the groundwork for more rigorous oversight, particularly through controls on energy use and taxation.

Experts suggest these laws fill a regulatory gap for Russian miners, who previously operated in a “grey area” without formal guidelines. However, despite new definitions and some restrictions, the legislation lacks clear paths for legally selling mined assets. It does not fully legalise mining, leaving some questions about its long-term impact on Russia’s crypto sector.