Russia Bans Crypto Mining for 6 Years in 10 Regions
Russia is increasingly developing more detailed regulations in the cryptocurrency space. In August, President Vladimir Putin legalized cryptocurrency mining. The country has since introduced new regulations to align cryptocurrency mining activities with the country’s energy needs.
Recent additional regulations include outright bans and seasonal restrictions, which will come into effect early next year.
Russian government approves list of regions banning cryptocurrency mining
Russia’s main state news agency TASS Report Russia plans six-year ban Cryptocurrency Mining From January 1, 2025 to March 15, 2031, in 10 regions. These regions include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Luhansk, Zaporizhia and Kherson.
In some areas, including Irkutsk, Buryatia and the Trans-Baikal region, Russia will restrict mining activities rather than impose a blanket ban. Mining operations will be suspended in these areas from January 1 to March 15, 2025, and from November 15 to March 15 in subsequent years.
The TASS news agency emphasized that the government does not consider the list of prohibited and restricted areas to be permanent and may be adjusted based on the decisions of the Legal Commission that governs the development of the energy sector. The government aims to keep energy consumption in balance with these new regulations.
“This is so-called inter-regional cross-subsidisation, where low-cost electricity in a regulated contract area is effectively compensated by producers and consumers in other areas. Following market liberalization in this area, restrictions may be lifted, of course, The prerequisite is sufficient capacity,” said Sergei Kolobanov, deputy director of the CSR Center for Fuel and Energy Complex Economics. Tell TASS.
according to data Data from the University of Cambridge shows that Russia accounts for 4.7% of the world’s Bitcoin mining volume Computing powerdown from 11% in August 2021. At the same time, American miners account for the largest share of global computing power, reaching 37.8%.
Cambridge data also shows that the average monthly computing power of Russian miners has dropped from 13.6 Eh/s to 8.7 Eh/s. Despite the legalization of mining in Russia, this has not spurred significant growth in mining activity in the country.
However, by 2024, the Russian government showed a more open stance towards cryptocurrencies, including Allow cross-border cryptocurrency payments and Preparing to launch state-backed cryptocurrency exchange. In addition, Russian legislators proposed Hold Bitcoin reserves to enhance financial stability.
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