Russia intends to ban cryptocurrency mining in certain areas, including occupied territories in Ukraine, to conserve electricity.
Russia's Plans to Ban Mining
Deputy Prime Minister of Russia, Alexander Novak, held a meeting with senior officials to discuss banning cryptocurrency mining in occupied territories of Ukraine. The restrictions are to ensure stable operation in case of potential electricity shortages ahead of the heating season. The bans will target regions such as Donetsk, Luhansk, Zaporizhzhia, and Kherson.
Regional Aspects of Bans
In Siberian regions like Irkutsk, Buryatia, and Zabaikalsky, mining will be seasonally restricted from December 1, 2024, to March 15, 2025, and annually from November 15 to March 15 until 2031. However, the North Caucasus and occupied territories will have a complete ban on crypto mining from December 2024 until March 2031, with no seasonal exceptions.
New Regulations in Russia
President Vladimir Putin signed new cryptocurrency legislation allowing mining with strict oversight and setting experimental frameworks for cross-border cryptocurrency payments. The bill also prohibits domestic crypto transactions for economic stability. Additionally, Russia plans to establish national cryptocurrency exchanges in Moscow and St. Petersburg, reflecting a dual approach to regulating digital assets.
The ban on cryptocurrency mining in Russian-occupied regions of Ukraine highlights the country's effort to tighten control over local resources, adding to geopolitical tensions.
