Russia: Adopted Bill amending FZ-259 autorising digital currencies mining and utilisation

On 2 August 2024, Bill no. 237585-8, amending the Digital financial assets, digital currency and changes in Certain Legislative Acts (FZ-259), was adopted. The Bill mandates the creation of a list of address identifiers suspected of involvement in illegal activities such as money laundering and terrorism financing. Furthermore, the Bill imposes obligations on the use of electricity for digital currency mining. It allows the government to limit or even disconnect electricity supply to mining operations that are conducted without proper registration or in regions where mining is prohibited. In addition, the Bill sets out specific requirements for the operation of mining pools and the management of mining infrastructure. Entities involved in these activities must be registered and meet certain legal and operational standards. Furthermore, the Bill restricts advertising related to digital currencies and associated financial assets, aiming to regulate their promotion and reduce potential risks to consumers. Moreover, the Bill establishes legal and compliance requirements for individuals and entities involved in digital currency mining, including the maintenance of official registers. In addition, it prohibits certain individuals, particularly those with criminal records or involved in extremist activities, from engaging in mining activities. Finally, the Bill forbids the combination of digital currency mining with certain functions within the electric power industry, such as electricity transmission and dispatch management.