Russia Bans Cryptocurrency Mining in 10 Regions Amid Energy Crisis and Bitcoin Reserve Proposal

The Russian authorities have Announce 10 regions in the country will stop mining cryptocurrencies within the next six years, due to energy shortages and strategic financial plans. The restrictions will start from January 1, 2025, and continue until March 15, 2031, and will be implemented in areas with high demand and different electricity prices.

Announcing a six-year ban on cryptocurrency mining

The ban will affect regions such as the People’s Republics of Dagestan, Chechnya, Donetsk and Lugansk. Likewise, special restrictions will be imposed in some Irkutsk and Zabaykalsky regions during the agreed maximum load on electricity networks in cold seasons. This was according to A Report by the Russian TASS news agency.

According to officials, the decision was taken to adapt to the needs of certain regions and correct issues related to prices. Energy sector expert Sergey Kolobanov noted that when the price of electricity remains low in some states, its prices are higher for other customers. The topical change of the electricity pricing system was also supported by regional policy specialist Vladimir Klimanov, who stressed the need for equal prices in the country.

Cryptocurrency mining regulations update

There have also been shifts in the controlling legal factors Cryptocurrency Mining in its area. It has been legal since November 2024, but still must be additionally registered with the Federal Tax Service (FTS). However, miners who use less than 6,000 kilowatt-hours per month do not pay for power, protecting small mining operations.

It is hoped that this registration system will stabilize the sector while at the same time responding to criticism of unregulated mining activities leading to regional energy shortages.

Provides a Bitcoin Strategic Reserve Proposal

The mining ban occurred at the same time as there was controversy about forming an organization Bitcoin Strategic Reserve To address the risks associated with traditional foreign exchange reserves. Currently, Russian State Duma member Anton Tkachev has proposed adopting Bitcoin as a structurally independent financial instrument, especially for a country that is severely facing inflation and foreign restrictions.

In response to the second question, Tkachev emphasized that Bitcoin itself is protected from geopolitical risks and other instability because it is an independent system from centralized modes. This approach reflects Russia’s changing view of cryptocurrencies as tools to promote financial stability.

A new cryptocurrency tax law has been enacted

Furthermore, Russia recently passed a law to tax cryptocurrencies apart from the mining restrictions mentioned above. The law has been signed before President Vladimir Putin in November 2024; At the same time, it is recognized that digital assets are property and regulated by law.

Measures such as restrictions on mining operations, legal changes, and the proper selection of All cryptocurrency reserves depict Russia’s reserves Trying to transform its financial system into the digital age.