Russia applies seasonal restrictions on cryptocurrency mining

• Russia has banned cryptocurrency mining in 10 regions due to energy demand.
• Russia remains open to Bitcoin and cryptocurrency mining but with strict tax compliance requirements.

The Russian government has approved restrictions on cryptocurrency mining in a list of regions and territories. According to According to local news agency TASS, cryptocurrency mining will remain restricted in 10 regions from January 1, 2025 to March 15, 2031.

These restrictions are consistent with Russia’s cryptocurrency mining regulations, which the president signed in August and October 2024.

Russia deviates from a complete ban

The ten regions experiencing a complete six-year lockdown include Donetsk. The People’s Republics of Luhansk, Zaporizhia, Kherson, Chechnya, North Ossetia, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, and Dagestan.

According to the report, the ban will affect individual cryptocurrency mining operations and mining pool operations. Along with these restrictions, Russia will impose seasonal bans on some regions during periods of peak energy consumption. Areas experiencing these temporary restrictions during the winter include certain regions of Irkutsk, Buryatia and Zabaykalsky.

These seasonal restrictions will apply in 2025 from January 1 to March 15. In the following years, it will extend to a longer period, from November 15 to March 15.

The Russian Cabinet said that the list of regions and territories is subject to change in response to the government’s findings on the challenges of developing electric energy. These restrictions aim to maintain a balance in energy use while taking into account industry requirements.

The latest restrictions on mining in Russia are an improved version of the previous restrictions Suggested By the government in November. Initially, lawmakers intended to ban cryptocurrency mining in 13 regions, including Irkutsk, Russia’s main mining region.

Major Russian mining companies like BitRiver rely on cheap electricity in Irkutsk. Local sources revealed that the Irkutsk region hosts BitRiver’s first and largest data center, which was launched in 2019 in the city of Bratsk.

Legal status of cryptocurrency mining in Russia

Knf I mentioned In October, Russia imposed stricter control on cryptocurrency mining, allowing only registered entities to mine. This new legislation reduces illicit behavior, especially money laundering and terrorist financing.

Additionally, these guidelines required miners to report their cryptocurrency revenues and holdings to Rosfinmonitoring, Russia’s financial watchdog.

Russia legalized cryptocurrency mining in November 2024. However, individuals and companies must ensure that information about the assets received and cryptocurrency wallet addresses is submitted to the Federal Tax Service (FTS).

The FTS launched the service of entering data into the register of miners on November 1, which is mandatory for individual entrepreneurs and legal entities. Individuals can obtain digital currency in the range of 6 thousand kilowatt hours per month.

After legalizing cryptocurrency mining in Russia, the Federation Council passed a bill to tax mining activities, as revealed in CNF. to update. The draft law stipulates that income generated from mining activities will be taxed based on its market value upon receipt. Furthermore, the legislation requires cryptocurrency mining infrastructure operators to report customer information to tax authorities.

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