The Russian government has approved the list of regions and areas where cryptocurrency mining will be banned starting next year. Crypto mining will be completely banned in 10 Russian regions for six years from January 1, 2025, local news agency TASS reported on December 24. The ban will remain in effect until March 15, 2031. Russian lawmakers also approved seasonal restrictions in key cryptocurrency mining regions to prevent power outages. The restrictions are in line with Russia’s cryptocurrency mining laws signed by the president in August and October 2024.
What regions are affected by the cryptocurrency mining ban?
Russia announced an important decision to regulate cryptocurrency mining by banning it in 10 regions by 2031. The restrictions, which will begin in January 2025, aim to balance energy use while prioritizing industrial demands. In addition, temporary mining restrictions will be imposed in three other regions during periods of peak energy consumption. The Russian government has listed regions where crypto mining activities will be completely banned, such as Dagestan, Chechnya, and the Donetsk and Lugansk People’s Republics.
These restrictions are part of a broader effort to efficiently manage energy resources while meeting industrial requirements. Meanwhile, in parts of Irkutsk, Buryatia and Zabaikalsky regions, mining will be restricted only during periods of high demand, such as January-March in 2025 and November-March in later years. The list of restricted regions may change according to the recommendations of the government commission in charge of electric power management, officials said. The main objective of these measures is to ensure a stable energy supply for industries while controlling the pressure that crypto mining puts on the energy grid.
Heavy regulations are coming
This decision follows Russia’s move to legalize cryptocurrency mining in November 2023. The framework requires miners to register with the Federal Tax Service and provide detailed information about their assets and wallet addresses. Individual miners are allowed to mine within a limit of 6,000 kWh per month, ensuring compliance with the country’s energy policies. By introducing these restrictions, Russia says it aims to meet the energy needs of industries while allowing regulated crypto mining.
Russia’s latest mining restrictions are a refined version of the initial restrictions officially proposed by the government in November. Initially, lawmakers planned to ban crypto mining in 13 regions, including Russia’s key mining region of Irkutsk. Meanwhile, major Russian mining industry firms like BitRiver rely on cheap electricity in Irkutsk. According to local sources, the Irkutsk region is home to BitRiver’s first and largest data center, which it opened in Bratsk in 2019.
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