Russia Publishes New Crypto Law Expanding State Control Over Digital Assets

Russia has recently published a new crypto law that expands state control over digital assets, signaling the government’s increasing oversight and regulation of the cryptocurrency industry. The law, signed by President Vladimir Putin, grants the government the power to implement regional restrictions on crypto mining activities and tighten regulations on related infrastructure. This includes the ability to ban mining operations in certain areas and regulate the providers supporting these operations. The law also authorizes multiple federal agencies to access digital currency identifier addresses, enhancing their ability to track transactions linked to money laundering or terrorism financing. In addition, the responsibility for the national mining register has been transferred to the Federal Tax Service, which will oversee registrations and penalize those with repeated infractions. However, individual miners can continue without registering if they adhere to specific electricity consumption limits. Furthermore, Russia is also working towards developing its own state-backed digital currency, the digital ruble, as it seeks to bypass sanctions and reduce reliance on the US dollar in foreign exchanges. The country has already legalized crypto mining and permitted cryptocurrency use in international trade, with experimental frameworks in place to facilitate cross-border crypto transactions.