Russia officially restricts cryptocurrency mining activities in 10 regions for six years, along with seasonal restrictions in three other regions, to minimize the risk of power outages.
On December 24, the Russian government officially approved the list of regions and territories that will be subject to the cryptocurrency mining ban, starting from January 1, 2025. According to TASS news agency, this ban will last for six years, until March 15, 2031, to address the issue of excessive energy consumption from cryptocurrency mining, especially during peak times.
This is seen as the latest move by Russia to tighten regulation of the cryptocurrency market, after the Russian President signed laws related to this in August and October 2024.
Impact on the cryptocurrency mining market
The comprehensive ban will be applied in 10 regions, including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk People's Republic, and Luhansk, as well as the Zaporizhzhia and Kherson regions.
The regulation affects both mining pool operations and individuals participating in cryptocurrency mining. The selection of these regions reflects the Russian government's efforts to balance energy consumption control and maintain economic activity in sensitive territories.
In addition to the comprehensive ban, the Russian government has also imposed seasonal mining restrictions in three areas of Siberia: Irkutsk, Buryatia, and Zabaikalsky. These restrictions will be applied in winter, when energy consumption peaks.
In 2025, these measures will be effective from January 1 to March 15. From 2026 onward, the duration of application will be extended, from November 15 to March 15 each year. The implementation of seasonal restrictions in Siberia, a region with low electricity costs attracting significant cryptocurrency mining activities, shows the government's consideration in ensuring energy supply for residents during winter.
These new regulations are an adjusted version of the initial proposal from the government in November 2024, which suggested banning mining in 13 regions, including Irkutsk – an important mining center in Russia. Irkutsk is known for its low electricity costs and is home to BitRiver's first and largest data center, a major mining company in Russia.
The exclusion of Irkutsk from the comprehensive ban, applying only seasonal restrictions, shows that the Russian government has listened to market feedback and is seeking a balanced solution. However, BitRiver declined to comment on the impact of the new restrictions on its operations.