A Russian state media report confirmed that the Russian government will impose a blanket ban on all types of digital asset mining operations in the Russian Federation.
Russia It is a very large jurisdiction for the crypto sector. A very large fraction of the Russian population invests in cryptocurrencies. Currently, the Bitcoin and Crypto sector is evolving under precise rules and laws introduced by the Russian government authorities between 2021 and 2024.
On December 24, 2024, TASS, a Russian state-backed news media agency, reported that Russia’s cabinet ministers decided to impose a blanket state-level ban on cryptocurrencies in step-by-step phases.
The planned ban on crypto mining will first be implemented in 10 particular regions of Russia. These regions are Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, and the Zaporizhia and Kherson regions.
Additionally, temporary crypto mining ban measures will also be visible in some areas of the Irkutsk region, Buryatia and Zabaykalsky Krai, during peak energy consumption.
The resolution will come into force from January 1, 2025 and will last until March 15, 2031.
Cabinet ministers clarified that the list of regions to ban cryptocurrency mining may undergo some changes, depending on the decisions of the government commission on issues related to the development of electrical energy.
In summary, we can say that the Russian government is going to ban cryptoasset mining operations in some particular regions where power outages are a very common problem.
Legality of crypto mining in the Russian Federation
In the jurisdiction of Russia, crypto mining is very beneficial because here, individuals and businesses can easily get electricity at low rates as Russia is abundant in oil.
In the past, Russian President Vladimir Putin praised the cold environment and low-cost electricity as a favorable ecosystem for crypto mining operations.
In November this year, the Federal Tax Service (FTS) launched a service and invited crypto miners to register with the FTS to obtain legal approval for crypto mining operations.
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