Key Takeaways
- Russia will ban crypto mining in several regions starting January 1, 2025.
- The ban addresses electricity shortages and interregional cross-subsidization issues.
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Russia will prohibit crypto mining in several regions starting January 1, 2025, extending through March 15, 2031, according to state news agency TASS.
The move seeks to tackle energy issues by imposing seasonal restrictions in major mining regions to avoid power shortages.
Affected areas include Dagestan, Ingushetia, Chechnya, and the Donetsk and Luhansk People’s Republics, where mining operations are considered contributing to electricity shortages and imbalances.
Additional seasonal restrictions will apply to Irkutsk, Buryatia, and the Trans-Baikal Territory.
Mining operations in these regions will be halted during peak energy consumption periods from January 1 to March 15 in 2025 and from November 15 to March 15 in subsequent years.
“The restrictions address both electricity shortages in certain regions and the issue of interregional cross-subsidization,” said Sergey Kolobanov, Deputy Director of the Center for Economics of Fuel and Energy Industries.
Vladimir Klimanov, Director of the Regional Policy Center, said residents and businesses in central Russia often bear the costs of subsidized electricity for regions like the North Caucasus.
Crypto mining has been legal in Russia since August 2024, when President Vladimir Putin signed a law formally recognizing the activity.
The law took effect on November 1, 2024, alongside additional regulations requiring miners to register with the Federal Tax Service.
Under this new mandate, miners must provide detailed information about their assets and wallet addresses, ensuring greater oversight of the industry.
While legal entities must register, individual miners can operate within a monthly electricity usage limit of 6,000 kWh.
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