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Putin signs law on regulation of digital currency turnover in Russia

The law gives the Russian government the right to prohibit digital currency mining in specific regions or in their individual territories, as well as to determine the procedure and cases for introducing such restrictions

MOSCOW, October 25. /TASS/. Russian President Vladimir Putin has signed a law on regulation of digital currency turnover. The corresponding document has been published.

The new legal developments come into force on November 1, the same time as a number of corresponding amendments adopted earlier.

Government powers

The law gives the Russian government the right to prohibit digital currency mining in specific regions or in their individual territories, as well as to determine the procedure and cases for introducing such restrictions. Participation in a mining pool, a special server used to distribute the load of digital currency mining, may also be prohibited.

The government will be able to regulate the activities of operators providing infrastructure for mining (previously this was enshrined in the form of an obligation of the Cabinet of Ministers, and now - in the form of a right).

The law expands the range of possible recipients of the digital currency identifier address. Previously, only the Federal Financial Monitoring Service (Rosfinmonitoring) could access it, now all federal executive agencies, as well as inquiry, preliminary investigation and operational search agencies can do this.

Previously, it was envisaged that Rosfinmonitoring would compile a list of identifier addresses, transactions on which look suspicious (money laundering, terrorist financing, etc.)

About register of miners

The amendments also authorize the Federal Tax Service to control the register of miners, on the basis of which operators provide services. Previously, the register was handled by the Ministry of Digital Development. Citizens can mine without being included in the register if they fit within certain limits on electricity consumption. For individual entrepreneurs and legal entities, mining is allowed only after being included in the register.

The Federal Tax Service will be able to exclude companies from the register of miners for repeated violations within one year. In this case, the operator will not have the right to provide mining infrastructure to organizations that are not included in the register or excluded from it.

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