Russia is taking a firm stance against Bitcoin mining in several regions due to growing energy concerns. Starting January 1, 2025, a complete ban on cryptocurrency mining will be in effect until March 15, 2031, in ten regions.
Regions Affected by the Ban:
The ban will impact Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and the recently annexed territories of Donetsk, Lugansk, Zaporizhzhia, and Kherson.
Seasonal Restrictions:
Three Siberian regions—Irkutsk, Buryatia, and Zabaikalsky—will face seasonal restrictions. Initially, these restrictions will run from January to mid-March 2025, but will expand to November through March in following years. These are peak energy consumption periods.
Reason for the Ban:
The government cites the energy-intensive nature of Bitcoin mining as a major strain on the power grid, especially in areas with limited infrastructure. This move follows legislation signed by President Putin in late 2024 aimed at preventing power shortages and blackouts. The ban applies to both individual miners and larger mining operations.
Impact:
This represents Russia’s most significant action yet to tackle its energy challenges while trying to maintain economic stability. It’s worth noting that Russian Bitcoin miners generated billions of dollars worth of Bitcoin last year.
