Russian Government bans crypto mining for 6 years in 10 regions

The Russian government has authorized a list of areas and territories where mining cryptocurrencies will be prohibited beginning in 2019. 

To avoid power outages due to the industry's high power consumption, Russian lawmakers also approved seasonal restrictions in strategic areas where cryptocurrency mining takes place, the Tass Russian news agency reported. According to the report, the ban will have an impact on both individual cryptocurrency mining and mining pool activity. 

Russia is the second-largest cryptocurrency mining hub in the world after the US, with mining consuming 16 billion kilowatt-hours annually, or about 1.5% of the country's total electricity consumption.

Russia bans cryptocurrency mining in certain regions for 6 years

On December 24, the local news agency TASS announced that ten regions in Russia would completely ban cryptocurrency mining for six years, beginning on January 1, 2025, and it will last until March 15, 2031. This new development is in line with the president of Russia's August and October 2024 already signed cryptocurrency mining laws. 

The most recent mining restrictions in Russia are an improved version of the first ones that the government formally suggested in November. At first, lawmakers intended to outlaw cryptocurrency mining in 13 areas, including Irkutsk, a crucial mining hub in Russia.

Regions in Russia affected by the partial ban

Whaleinsider.News earlier reported in a November post that in an effort to reduce power outages, Russian authorities announced that they would ban cryptocurrency mining in several regions by winter. The ban will apply to six North Caucasus regions. and all occupied Ukrainian territories, the report added.

Ten Russian territories and regions—including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People's Republics, Zaporizhzhia, and Kherson—will ban the mining of cryptocurrency, the post added.

Russia will also partially limit mining activities in three Siberian regions during the winter months when energy consumption peaks, in addition to the blanket bans. Some parts of the Irkutsk, Buryatia, and Zabaikalsky regions will be impacted by the seasonal restrictions. These restrictions will be in effect from January 1 to March 15 in 2025, and in following years, they will be extended to a longer period from November 15 to March 15.

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