Islam Times - Russia Imposes Six-Year Ban on Cryptocurrency Mining in Key Regions

Islam Times - Russia will implement a six-year ban on cryptocurrency mining in 10 regions starting January 1, 2025, citing energy consumption concerns, as per a government announcement reported by TASS.

The Russian government has approved a comprehensive ban on cryptocurrency mining in 10 regions, effective January 1, 2025. The prohibition will last until March 15, 2031, targeting both mining pool operations and individual activities.

The affected regions include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and the territories of Donetsk, Lugansk, Zaporizhzhia, and Kherson.

Seasonal restrictions have also been introduced in three Siberian regions—Irkutsk, Buryatia, and Zabaikalsky. These will limit mining activities during winter peak energy consumption periods. For 2025, the seasonal ban will run from January 1 to March 15, and subsequently from November 15 to March 15 in the following years.

These measures align with cryptocurrency mining regulations signed into law in August and October 2024. Initially, the government considered extending the ban to 13 regions, including Irkutsk, a significant mining hub due to its low-cost electricity. Major operators, such as BitRiver, which runs the largest data center in Bratsk, have yet to comment on the potential impact of these changes.

The government’s actions aim to address energy shortages and ensure regional stability by reducing the risk of blackouts. By targeting regions with energy challenges or strategic importance, authorities hope to maintain a balance between mining growth and energy needs.

This shift could lead miners and companies to relocate to other regions within Russia or abroad, where regulations are more favorable and energy resources are readily available. The new restrictions may alter the global cryptocurrency mining landscape, potentially diminishing Russia’s dominance in the sector.