Russia bans cryptocurrency mining in key regions starting in 2025

Russia will ban cryptocurrency mining in several regions starting January 1, 2025, and extending until March 15, 2031. According to To the state news agency TASS.

The move seeks to address energy issues by imposing seasonal restrictions in key mining areas to avoid energy shortages.

Affected areas include Dagestan, Ingushetia, Chechnya and the Donetsk and Luhansk People’s Republics, where mining operations are considered to be contributing to electricity shortages and imbalances.

Additional seasonal restrictions will apply to Irkutsk, Buryatia and the Trans-Baikal region.

Mining operations in these areas will be halted during periods of peak energy consumption from January 1 to March 15 in 2025 and from November 15 to March 15 in subsequent years.

“The restrictions address electricity shortages in certain regions and the issue of cross-subsidy between regions,” said Sergey Kolobanov, deputy director of the Center for Economics of Fuel and Energy Industries.

Residents and businesses in central Russia often bear the costs of subsidized electricity for regions such as the North Caucasus, said Vladimir Kleimanov, director of the Regional Policy Center.

Cryptocurrency mining has been legal in Russia since August 2024, when President Vladimir Putin signed a law officially recognizing the activity.

The law came into effect on November 1, 2024, along with additional regulations requiring miners to register with the Federal Tax Service.

Under this new mandate, miners must provide detailed information about their assets and wallet addresses, ensuring greater oversight of the industry.

While legal entities must register, individual miners can operate within a monthly electricity usage limit of 6,000 kilowatt-hours.