Russia to Ban Cryptocurrency Mining in Select Regions Amid Power Concerns

Russia plans comprehensive cryptocurrency mining bans in selected regions from 2024-2031 to address power shortages and regulate digital currency activities.

Key Insights

  • Russia plans to ban cryptocurrency mining in six North Caucasus and occupied Ukrainian regions from December 2024 through March 2031.
  • The government has set a 6,000 kWh monthly power consumption limit for unregistered individual miners, requiring entrepreneurial registration for continued operations.

MOSCOW, Nov 20 (MarketsXplora) – Russian authorities are preparing to implement a comprehensive cryptocurrency mining ban across specific regions, including occupied Ukrainian territories, to mitigate power shortages during the winter months.

Deputy Prime Minister Alexander Novak has spearheaded a government commission to develop the mining restrictions, which will be enforced from December 2024 through March 2031.

Russia to Ban Crypto Mining in Six Regions Through 2031

The ban will encompass six regions in the North Caucasus and occupied Ukrainian territories. Additionally, the Zabaikalsky region in Siberia will face annual mining restrictions during winter seasons through 2031.

This initiative follows recent legislative developments, including President Vladimir Putin’s signing of new cryptocurrency mining regulations earlier this month. The Russian government has simultaneously advanced draft amendments to tax legislation covering crypto transactions and mining activities.

Complementing the regional bans, Russian authorities have established a monthly power consumption limit of 6,000 kilowatt-hours for unregistered individual miners. Those exceeding this threshold will be required to register as individual entrepreneurs to continue mining operations.

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