Starting January 1, 2025, Russia will ban cryptocurrency mining in 10 regions for 6 years. The ban, approved by the government, will last until March 15, 2031, and applies to both individual miners and mining groups. This decision is aimed at addressing concerns about energy shortages caused by the high power demand of crypto mining.
Regions Affected by the Ban
The ban will target regions like Dagestan, Chechnya, and North Ossetia. In addition, some Siberian areas, including Irkutsk, Buryatia, and Zabaikalsky, will face temporary mining restrictions during the winter months. These seasonal limits are meant to prevent energy shortages during colder months when power usage is higher.
While the Irkutsk region—a hub for many large mining companies—won’t face a full ban, the new rules may still affect operations there. The government says these steps are necessary to balance power use and avoid outages.
Why the Ban Was Introduced
Crypto mining uses a lot of electricity, especially in regions where power is cheap due to government subsidies. By restricting mining, Russia hopes to save energy for other uses during peak demand periods.
In July, Russia officially legalized crypto mining, but it still bans using cryptocurrencies for everyday payments. However, it does allow using crypto for international transactions, partly as a way to work around sanctions imposed after the conflict in Ukraine.
A Balancing Act
This ban shows how Russia is trying to regulate the growing crypto industry. The government wants to balance the economic opportunities from mining with the need to keep energy supplies stable. Officials also plan to review the affected regions regularly and adjust the restrictions as needed.
