In 2024, Russia experienced a sharp increase in demand for crypto mining equipment and services. This growth has been facilitated by legislative changes introduced by President Vladimir Putin. However, the industry's expansion encounters new restrictions aimed at regulating energy consumption.
Sharp Increase in Demand for Mining Equipment
According to the latest report from the news agency PRIME, in Q4 2024, Russia saw a threefold increase in demand for industrial mining equipment and services compared to the same period the previous year.
Legislative Changes Driving Growth
In summer 2024, President Vladimir Putin signed new legislation that came into effect on November 1, 2024. Under the new law, businesses and individual entrepreneurs can engage in crypto mining once they register with the national miners' registry. Individual miners are not required to register unless their monthly energy consumption exceeds 6,000 kWh.
New Restrictions and Their Impact on the Industry
The Russian government is introducing new restrictions to manage energy consumption. A draft resolution proposes a ban on mining in certain regions, including Dagestan, Chechnya, and Ingushetia, as well as parts of Irkutsk, Buryatia, and Zabaikalsky Krai, from January 1, 2025, to March 15, 2031. The key reasons are energy shortages and price disparities in subsidized regions.
The rapid growth of crypto mining in Russia is driven by legislative changes, but the government is taking measures to control energy consumption. The introduction of taxes and regional restrictions may alter the market dynamics in the coming years.
