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News

Russian Crypto Mining Ban Now Active In 10 Regions

17 hours ago - Around 2 mins mins to read

Key Points:

  • January 1, 2025, Russia will prohibit crypto mining in ten regions until March 2031 to address high energy consumption and maintain a balanced power supply.
  • The Russian crypto mining ban targets energy-subsidized areas but may be altered based on energy demand assessments by a government commission.
The government of Russia has imposed a six-year ban on mining cryptocurrencies in ten regions amid a high energy consumption rate.
Russian Crypto Mining Ban Now Active In 10 Regions

Read more: New Russian Crypto Law Comes Into Effect November 1 

Russian Crypto Mining Ban Enacted in Key Regions for Six Years

The Russian crypto mining ban was approved by the Council of Ministers, and it goes into effect on January 1, 2025, to last until March 15, 2031. According to a December 24 report by the state-owned news agency Tass, the move would help ensure a balance in the supply of energy.

Targeted regions include Dagestan, North Ossetia, and Chechnya. The listed areas enjoy inter-regional subsidies on electricity, reducing the price of electricity and, subsequently, making crypto mining more energy-intensive. The government will consider adjusting the list of banned regions in case a commission finds changes in energy consumption justify such action. The ban can also be temporarily removed during periods of low energy consumption.

Russian crypto mining was legalized in July, and the law went into effect last month. However, while mining itself is allowed, the use of cryptocurrencies as a means of legal payment for internal transactions remains prohibited. Cross-border crypto settlements are exempt, however, as part of efforts to bypass international sanctions imposed after Russia’s invasion of Ukraine.

Global Crackdown on Crypto Mining Amid Power Shortages

The latest ban refines an earlier proposal from November, which sought to ban mining in 13 regions, including the key mining hub of Irkutsk. The adjustments are done in a bid to ease the energy shortage concerns while retaining economic stability in the non-restricted areas.

Russia is not the only country clamping down on crypto mining because of the high power consumption required by the activity. In 2022, Kosovo banned mining to save electricity during an energy crisis, while Angola criminalized it in April 2024. Iceland and Norway in Europe also have very stringent regulations with respect to energy concerns.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Russian Crypto Mining

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.