The Russian government has decided to extend the ban on crypto mining for six years due to increasing energy consumption.
Crypto Mining Ban in Selected Regions
The Russian government has banned crypto mining in certain regions from January 1, 2025, to March 15, 2031. The list includes areas such as Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People's Republics, Zaporizhia, and Kherson. Additionally, mining operations are temporarily prohibited in parts of the Irkutsk region, Buryatia, and Zabaykalsky Krai from January 1 to March 15, 2025, and from November 15 to March 15 in subsequent years.
High Energy Consumption Issue
Crypto mining accounts for 1.5% of Russia's total energy consumption, creating challenges for regions with harsh climates. The high energy consumption has also caused an imbalance in electricity payments across several regions in the country. The government is working on reducing or eliminating this imbalance.
Legal Changes and Mandatory Registration
Russia has legalized crypto mining and introduced a mandatory registration service which allows the Federal Tax Service to obtain information on miners' assets and crypto wallets.
The extension of the crypto mining ban in Russia is linked to the need to maintain energy consumption balance in the country. New legal regulations also require mandatory registration of crypto miners.
