Russia Bans Cryptocurrency Mining in Neighboring Ukraine Starting December 2024
Russian authorities have announced a ban on cryptocurrency mining in Ukraine, starting in December 2024, in a move aimed at addressing electricity shortages exacerbated by intensive mining activities.
The ban includes the Donetsk, Luhansk, Zaporizhia, and Kherson regions, which have seen a surge in mining activity.
The move is part of broader regulatory reforms covering Russia’s mining and cryptocurrency sectors.
The primary goal of the decision is to ease pressure on local electricity grids, which are suffering from limited resources and increasing consumption.
The restriction is in line with the suspension of seasonal mining in other regions such as Siberia, which will last until 2031, where demand for electricity in the winter season is high.
The ban reflects Russia’s move toward strict regulation of the cryptocurrency sector, with a focus on minimizing negative impacts on energy infrastructure, as the government continues to seek a balance between supporting the digital economy and protecting domestic resources
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