Russia considers the ban on the coded currency mining in the Irkutsk region

Main meals:

• Starting April 1, 2025, and extends until at least 2031, Russia may impose a year -out on the coded currency mining in the southern Erutsk region.
• Igor Copziv, IRKUTSK ruler, has called for restriction to treat energy deficiency caused by large encryption mining operations that use up to 650 megawatts.
• If adopted, this legislation may have a severe impact on the mining industry in the region by forcing miners to transfer operations or stop them completely.

The IRKUTSK region, the largest hot point in encryption mining in Russia, is concerned about the prohibition of potential cryptocurrency mining. Reports indicate that the authorities are considering raising restrictions that exceed the current seasonal boundaries, and thus restricting mining operations throughout the full year. If passed, this ban will be valid on April 1, 2025, and remains in place until March 15, 2031 at least.

The government pays for a complete ban

Ruler’s proposal and federal consideration

Irkutsk Igor Kobzev has called for a full ban on encryption mining in the southern part of the region. The ruling contact stresses the massive mining operations on the infrastructure of local energy and supports the transfer of electricity to other social and economically beneficial companies. This has attracted a large-scale mining farmer using about 650 megawatts of energy-reward for energy needs in medium-sized metropolis.

Read more: The Bank of Russia is planning to allow encryption investments for wealthy investors

The effect of current seasonal restrictions

The Russian government previously carried out a periodic ban on encryption mining to prevent energy shortages in the winter. Directed by Prime Minister Mikhail Michotin in late 2024, from November 15 to March 15 in many energy areas, including the southern Erkotsk, sections of the transit region, Baycal, and Boriatia. These procedures have been implemented to maintain enough electrical supply of residential and industrial consumers throughout the difficult Siberian winter.

If the current plan is granted, the seasonal embargo will expand to a permanent ban throughout the year, which greatly changes the scene of the encryption mining sector in Russia.

Struggle to mining business

The proposed mining embargo throughout the year raised concerns between players in this field. Current currency mining was a major engine of economic activity in IRKUTSK, as it attracts investments from both local and international institutions. Wide mining facilities, which relied on inexpensive electricity in the region, will face a mysterious future.

Industry experts warn that the restriction may leave mining operations that are cut off, as many facilities are strongly linked to local infrastructure. The transition to another region would create logistical and financial obstacles, especially since other Russian lands have already implemented mining restrictions. Some researchers believe that a direct embargo can cause mining workers in a hidden way, which leads to more criminal activity and challenges in organizational enforcement.

Read more: Belarus Eyes, a boom for encryption mining in excess electricity

Legal and organizational considerations

An uncertain legal framework for encryption in Russia

Russia’s position on cryptocurrencies is still very flexible, with the impact of changing policies on many areas of industry. While mining is not explicitly prohibited at the country level, it works in a legal gray area. Legionships have discussed regulatory measures over and over again, including tax systems and licensing requirements for workers. However, the continuous energy crisis has stimulated harsh regional measures, such as that proposed in Irkutsk.

Despite these restrictions, Russia continues to research the use of Blockchain technology for financial and governmental purposes. Some officials argue with organized encryption exchange to ensure that Russia is not late in adopting global digital assets. However, intense energy mining still represents a difficult problem, especially in sites with strength restrictions.

Russia is now one of the main actors in coding mining all over the world, as it ranks among the five best countries in the contribution of prices. A prolonged ban in Irkutsk may harm its position, which helps to compete with mining centers in Kazakhstan, the United States and the Middle East.