Two new bills have been adopted in Russia that change the country’s position regarding digital assets. The State Duma has legalized cryptocurrency mining in Russia starting November 1, 2024.
Who is allowed to mine
The current law establishes general conditions for conducting mining activities. Legal entities registered in accordance with the law and individual entrepreneurs can engage in mining activities, but only if they comply with the conditions set by the Ministry of Digital Development.
Individual entrepreneurs with unexpunged or outstanding criminal convictions for economic crimes, crimes against state authority, or for intentional medium, serious, and especially serious crimes; those included in the list of terrorists and extremists; as well as legal entities with such individuals among their founders (participants), beneficiaries, and managers will not be able to engage in mining.
The new rules allow unregistered individuals to service mining installations if their energy consumption does not exceed the permissible level. The government has assigned supervisory functions to various institutions, with the Bank of Russia having preferential powers.
The Cabinet of Ministers will establish the principles for the operation of mining infrastructure, and additional rules regarding the activities of mining pools will be developed in collaboration with the Bank of Russia. Miners will be required to register the mined digital assets with an authorized state body, which, together with the central bank, has the right to impose restrictions on cryptocurrency transactions if necessary to ensure the stability of the country’s economy.
Legal entities and individual entrepreneurs are prohibited from combining cryptocurrency mining with activities related to the transmission of electricity, operational dispatch management in the energy sector, production, or buying and selling electricity.
The impact of Russia’s move to legalize Bitcoin mining
The new law adopted in Russia will introduce clear rules that allow companies to operate within the legal framework. It is expected that the law will quickly yield results.
- Increased investment and infrastructure development
Legalization of mining opens up prospects for huge investments in the Russian blockchain sector from major funds and technology corporations. Such capital influx contributes to the modernization of energy and infrastructure and becomes an ideal platform for large-scale mining activities.
Russia is beginning to invest in the development of data centers and high-tech mining farms, positioning the state alongside other global hubs for digital mining. - Economic stability and employment opportunities
The new law allowing cryptocurrency mining in Russia ensures state oversight, which means responsible energy use and monitoring of cryptocurrency flows in the country. This transparency allows the Russian Federation to effectively manage its digital economy and protect the country from instability. Miners will be required to declare their income, which will help the government monitor the activities of companies and, consequently, their economic stability.
Legalized mining also creates jobs, especially in energy-intensive regions like Siberia, where mining is very profitable due to low electricity costs. - Profitability and long-term prospects for miners
Due to the very low cost of electricity in Russia — 5-5.3 rubles per kilowatt-hour—mining is profitable for both large miners and individual players. The best ASICs, such as the Antminer S19 XP, provide high hashing speeds and daily rewards that offset electricity costs and guarantee fixed profits. As Bitcoin prices are expected to rise, the growing demand for equipment in the market will only increase their profitability.
Conclusion
The decision to encourage cryptocurrency mining in Russia and further legalize cryptocurrency is an important step with significant consequences. The country aims to attract investments and ensure transparency in the crypto sector. This reflects a progressive readiness to integrate digital assets into any form of the national economy.
The scarcity of Bitcoins makes them a highly valuable commodity for investors and increases the profitability of mining, while the availability of electricity in Russia enhances this advantage. Thus, the new law will serve the interests of Russian miners and position the country as a global leader in cryptocurrency mining, combining innovation with economic security.
