Legalization of Mining and Cryptocurrency Exchanges Work in Russia: Risks and Limits of Legal Regulation

Abstract

The development of technology is radically transforming all spheres of human life, including finance. As a result, new institutions are emerging, and existing ones are being modernized. Economic relations are increasingly shifting into the digital space, leading to transformation of traditional financial instruments. Money is losing its material forms and regulatory properties, giving way in the economy to alternative instruments. The sanctions imposed against Russia in recent years have significantly affected the country’s economic and financial systems. One of the most notable consequences has been the accelerated development of the cryptocurrency market. The paper addresses the issues of legalizing mining and cryptocurrency exchanges in Russia. The study is dedicated to examining the legal regime governing the circulation of cryptocurrencies, determining the place of digital currencies within the legal system of Russia and abroad, and identifying the risks associated with their circulation. The author analyzes the peculiarities of mining, the legal aspects of issuance and circulation of digital currencies, as well as the legal foundations for their use in international settlements. Attention is drawn to the limitations of legal regulation concerning relations in this sphere. The paper evaluates the current state and development prospects of the cryptocurrency sector in Russia and explores the role of the Government of the Russian Federation and the Central Bank of Russia in regulating this activity.