Russia plans to ban crypto mining in selected regions starting on Jan. 1, 2025. The government resolution, seen by TASS, outlines restrictions lasting until March 15, 2031.
Mining activities, including participation in mining pools, will be prohibited in Dagestan, Ingushetia, Chechnya, and several other regions, including the Donetsk and Lugansk People’s Republics, Zaporizhia, and Kherson.
Temporary bans will also be instituted during peak energy periods in parts of Irkutsk, Buryatia, and Zabaikalsky Krai. The restrictions will run from January to March 2025 and annually from Nov. 15 to March 15, starting in 2026.
The Cabinet of Ministers pointed out that the list of restricted regions may be different. Changes depend on the conclusions of the government’s Commission for the Development of Power. According to the officials, a step has been taken to stabilize energy consumption at the level of industrial demands.
Crypto mining linked to electricity subsidy imbalances
Energy experts relate this ban to local power shortages and interregional subsidies for electricity. Sergey Kolobanov from the Center for Strategic Research explained that cheaper electricity in a region is often subsidized, though compensation comes from other regions. This imbalance drives the government’s decision to restrict mining in those zones.
The government had noticed uneven electricity costs between central Russia and regions such as the North Caucasus, according to the regional policy expert Vladimir Klimanov. It hopes this package of measures will provide an equal business climate in every region.
In the meantime, Russia has legalized crypto mining but under rigid conditions: It requires miners to declare their assets and wallet details before the Federal Tax Service, FTS. A person can mine up to 6,000 kWh per month without any penalty. On the other hand, companies have to continue with very complicated reporting rules.
The government feels the new policy would balance the energy resources and unify the regional electricity payments. Still, according to industry experts, restrictions might get relaxed once the energy market is liberated, provided the supply gets stabilized.
This change in policy reflects Russia’s cautiousness in trying to balance crypto adoption with the needs of national energy. What it means for the mining sector in the future and for regional economies is not clear yet.
