Russia tightens grip on cryptocurrency mining: Bans and restrictions in sight

The regulatory landscape for cryptocurrencies in Russia continues to take shape with increasingly clear contours. Following the legalization Following the ban on cryptocurrency mining by Russian President Vladimir Putin in August, the country is now moving forward with new measures to align this activity with national energy demands. The new measures include definitive bans and seasonal restrictions that are expected to come into effect as early as 2025, generating debate and uncertainty in the market.

According to TASS, the main news agency News According to the Russian state-run company, the country is planning to implement a six-year ban on cryptocurrency mining in ten specific regions. The measure, which will run from January 1, 2025, to March 15, 2031, will cover areas such as Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, as well as the regions of Donetsk, Lugansk, Zaporizhzhia and Kherson. The decision will deal a blow to mining activity in these areas, forcing miners to relocate their operations or shut down their operations.

In addition to the total bans, the Russian government will also implement seasonal restrictions in other regions, such as Irkutsk, Buryatia and the Trans-Baikal Territory. In these areas, mining operations will be paused from January 1 to March 15, 2025, and then from November 15 to March 15 in subsequent years. This approach aims to mitigate energy consumption during peak periods while ensuring supply for other needs.

It is worth noting that the list of regions subject to bans and restrictions is not definitive. The Russian government has indicated that there may be adjustments based on decisions by the legal committee responsible for the development of the energy sector. The priority, according to the authorities, is to maintain balanced energy consumption across the country. This flexibility, however, adds an element of uncertainty for miners, who must deal with a constantly evolving regulatory landscape.

Currently, Russia is the second largest mining center of cryptocurrencies on a global level, second only to the United States. The country is responsible for consuming 16 billion kilowatt-hours per year for mining activities, which is equivalent to a percentage of approximately 1,5% of total electricity use, according to data from the Ministry of Energy.