Russia has imposed a significant restriction on cryptocurrency mining, approving a six-year ban in ten key regions across the country. Starting January 1, 2025, and lasting until March 15, 2031, the ban will affect regions such as Dagestan, Ingushetia, Chechnya, and parts of the Donetsk and Lugansk territories. This move follows Russia’s broader efforts to regulate the cryptocurrency mining sector, which has become increasingly important in the country, especially with its reliance on cheap electricity for mining operations.
In addition to the blanket ban, Russia will implement seasonal mining restrictions in three major Siberian regions: Irkutsk, Buryatia, and Zabaikalsky. These areas are known for their heavy cryptocurrency mining activity, and the restrictions will aim to prevent energy blackouts during winter months, when power consumption peaks. These seasonal restrictions will start on January 1, 2025, and continue until March 15 of the same year. In the following years, the restrictions will be extended from November 15 to March 15.
Initially, the Russian government had proposed a blanket ban in 13 regions, including Irkutsk, one of the most critical areas for cryptocurrency mining due to its access to cheap energy. However, the government revised its plan, opting for seasonal restrictions in regions like Irkutsk, where major mining companies like BitRiver operate large-scale data centers. Irkutsk is home to BitRiver’s first data center, which was launched in 2019, and the company declined to comment on how these new restrictions might affect its operations.
These new regulations come in the wake of Russia’s cryptocurrency mining laws signed in August and October 2024. While the seasonal restrictions aim to manage the energy supply effectively during high-demand periods, the blanket ban on cryptocurrency mining is part of Russia’s broader strategy to control its energy resources and limit the environmental impact of crypto mining. The future of cryptocurrency mining in Russia remains uncertain, as these restrictions could shape the industry’s landscape over the next several years.
