According to local reports, the Russian government will ban cryptocurrency mining activities in ten major regions following the recent passing of new laws related to the industry. It will also implement seasonal bans on other regions and may add more regions to the list amid the ongoing electrical crisis in the country.
Key regions face a 6-year mining ban
On December 24, local news agency TASS reported open The Russian government has approved a list of main regions and territories where cryptocurrency mining activities will be banned from January 1, 2025. The ban aims to “maintain a balance of energy consumption” and will be in effect until March 15, 2031.
According to the report, the measure includes a six-year ban on all cryptocurrency mining activities and mining pools in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Luhansk People’s Republic of, Zaporizhia and Kherson. regions.
In addition, the ban has been temporarily extended to some areas of the Irkutsk Region, Buryatia and Zabaikalsky Krai during peak energy consumption. These areas will face a seasonal ban from January 1 to March 15, 2025, and from November 15 to March 15 in the following years.
The government also indicated that the list of regions is not final and will be modified based on potential developments in the electricity sector. Experts told the local news agency that the ban is not only related to local electricity shortages but also to electricity payment concessions in some areas.
Sergey Kolobanov, deputy director of the Center for Fuel and Energy Sector Economy, explained that the ban “coincides with the end of the transitional period to abolish this benefit.”
Cryptocurrency mining scene in Russia
In September, Abdul Muslim Abdul Muslimov, Prime Minister of the Republic of South Dagestan, urged the Russian government to take stronger action against illegal mining centers in the region, and called on authorities to pay more attention to the sophisticated methods miners are developing to work.
The following month, Deputy Energy Minister Evgeniy Grabchak revealed that the ongoing electrical crisis in key regions made providing significant power capacity almost impossible until 2030. As reported by Bitcoinist, Evgeniy Grabchak announced that all types of mining would be banned in specific regions of Russia. Following the law recently signed by President Vladimir Putin.
In October, President Putin approved a law to regulate cryptocurrency trading, with the aim of expanding government control over cryptocurrency mining activities. This legislation entered into force on November 1, and allows the Russian government to ban mining activities in specific areas or individual territories and determine the terms and conditions of restrictions.
Furthermore, the amendments enabled the government to regulate the activities of companies providing mining infrastructure. It also allowed the Federal Tax Service to control the miners’ registry, which is handled by the Ministry of Digital Development.
It is worth noting that the registration is part of legislation signed last August to grant the mining sector legal status within the country. Since it came into force on November 1, more than 150 companies have applied for a cryptocurrency mining license to operate legally in Russia.
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