A major ban could change the course of cryptocurrency’s future – here’s how

With the arrival of the new year, a ban on cryptocurrency mining was imposed in Russia.

The government imposed this measure in 10 regions, including Dagestan, North Ossetia and Chechnya. CoinDesk I mentioned. The duration of the ban is six years, with an expiration on March 15, 2031, although the length and affected areas could be changed by a committee.

Altcoin Buzz He noted that large miners are known to operate in those places and that the ban “could shake up the local cryptocurrency scene.” Companies are looking to relocate within the country or to other countries, and the rule could pave the way for increased regulation of the industry around the world.

Other regions of Russia – Irkutsk, Buryatia and Zabaykalsky – are subject to seasonal bans from November until March, according to Prism blocks.

This step comes to save energy in the country suffering from an energy crisis.

Cryptocurrency mining only became legal in Russia in November.

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“The ban also takes into account regional electricity subsidies, making energy use cheaper in some regions,” CoinDesk reported.

It requires mining Huge amounts of electricity, much of which is powered by dirty fuels, and scarce water resources, contribute to worsening pollution and environmental degradation.

In the United States, the cryptocurrency industry accounts for an estimated 2.3% of energy consumption, although this number may be higher. E&E News I mentioned. It strains the grid, contributes to environmental injustice in places like Memphis, Tennessee, and allegedly causes health problems through noise pollution in Granbury, Texas.

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While cryptocurrency mining may be the root cause of Tehran’s ongoing power outages, and illegal miners have stolen electricity in Malaysia, some companies – including… Vivo PowerVidrock and others are working to reshape the industry’s image.

Ethereum reduced its energy demand by 99.95% when it switched from proof-of-work to proof-of-stake mining in 2022, and federal officials are trying to rein in the underground sector.

Furthermore, cryptocurrency advocates say that the industry is naturally gravitating more toward off-grid renewable energy as a smart financial investment to sustain operations, and that cryptocurrencies can be an effective way to stimulate investment and innovation in renewables.

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