According to local reports, the Russian government plans to ban crypto mining activities in 10 major regions following the recent enactment of new industry laws. Other regions may also implement seasonal bans, adding more regions to the list as the country continues to experience a power crisis.
Key areas face six-year mining ban
This was reported on December 24th by local news agency TASS. revealed The Russian government has announced that it has approved a list of key regions and regions where crypto mining activities will be prohibited from January 1, 2025. The ban aims to “maintain energy consumption balance” and will remain in effect until March 15, 2031.
According to the report, the measures include a six-year ban on all cryptocurrency mining and mining pool activities in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk People's Republic, Zaporizhia, and Kherson. It includes a ban. region.
In addition, during peak energy consumption periods, the ban will be temporarily extended to some regions of Irkutsk Oblast, Buryatia and Zabaikalsky Krai. A seasonal ban will be imposed in these areas from January 1 to March 15, 2025, and from November 15 to March 15 next year.
The government also said the list of regions is not final and will change based on potential power sector developments. Experts told local news agencies that the ban is related to “not only local electricity shortages, but also the privilege of paying electricity bills in some areas.”
Sergei Kolobanov, deputy director of the Economic Center for the Fuel and Energy Sector, explained that the ban “synchronizes with the end of the transition period for the abolition of this benefit.”
Russian virtual currency mining landscape
In September, Prime Minister Abdulmuslim Abdulmuslimov of the southern Republic of Dagestan called on the Russian government to take stronger measures against illegal mining centers in the region, calling on the evolution of operational methods miners are developing. He called on authorities to pay more attention to the issue.
The following month, Deputy Minister of Energy Evgeny Grabchak revealed that the ongoing electricity crisis in key regions had made it nearly impossible to provide large-scale electricity capacity until 2030. As reported by Bitcoinist, Evgeny Grabchak announced that all types of mining will be banned in certain regions of Russia. According to a law recently signed by President Vladimir Putin.
In October, President Putin approved a law regulating the trading of digital currencies, with the aim of expanding government control over cryptocurrency mining activities. The law, which came into force on November 1, allows the Russian government to ban mining activities in certain regions or individual territories and to determine the conditions and cases for restrictions.
Additionally, the amendments allow the government to regulate the activities of companies providing mining infrastructure. The Federal Tax Service was also allowed to manage the register of miners, which was administered by the Ministry of Digital Development.
Notably, this registration system is part of a law signed in August to give legal status to the mining sector in the country. Since it took effect on November 1, more than 150 companies have applied for crypto mining licenses to legally operate in Russia.
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