Russia Imposes Six-Year Crypto Mining Ban Across 10 Regions

• Russia has imposed a 6-year ban on crypto mining.
• The crypto mining ban cuts across 10 different regions.
• Russia’s electric energy challenges triggered the crypto mining ban.

The Russian government has reportedly imposed a six-year cryptocurrency mining ban across 10 regions within the federation. The areas affected by the new legislation include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, and in the Zaporizhia and Kherson.

According to TASS, a total ban on cryptocurrency mining will be imposed in 10 Russian regions for six years starting January 1, 2025. Russian lawmakers also approved seasonal restrictions in major cryptocurrency mining areas to prevent power outages. https://t.co/d2qub4RNxl

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Additionally, the government imposed a temporary ban on the Irkutsk Region, Buryatia, and the Zabaikalsky Krai. The government will restrict mining operations in those regions during peak energy consumption. Per the report, such periods fall between January 1 and March 15 in 2025 and November 15 to March 15 for subsequent years.

Meanwhile, the government noted that it would continuously review the regions and territories affected by the crypto mining restriction, depending on the changes in the nation’s electric power development. Therefore, the government’s aim in putting the ban is to maintain the balance of energy consumption, taking into account the electric power industry’s demands.

Russia’s History with Crypto Mining

It is worth noting that Russia legalized cryptocurrency mining on November 1. Following the development, miners were required to provide the Federal Tax Service (FTS) with information about crypto assets received and the wallet addresses involved. The FTS simultaneously launched a data entry service for crypto miners. The government assigned individual miners a maximum of 6,000 kWh per month.

Read also: Russia Legalizes Crypto Mining, Shakes Up Bitcoin Scene

Sergey Kolobanov, deputy director of the Center for the Economy of Fuel and Energy Sectors at the Center for Strategic Research, said the recent ban affects electricity payments in some regions and goes beyond local electricity shortages. Kolobanov noted that the government synchronized the ban’s timing with a market liberalization period. According to him, the government may lift the restrictions with sufficient capacity.

Meanwhile, Vladimir Klimanov, Director of the Center for Regional Policy at the IPEI of the Presidential Academy, thinks the measures will contribute to more equitable conditions for conducting business in the energy sector across the country.

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