Starting January 1, 2025, Russia will impose a six-year ban on cryptocurrency mining in 10 districts to combat escalating energy demand. The limits, in effect until March 15, 2031, aim to uphold the stability of the country’s electricity grid.
Dagestan, Chechnya, North Ossetia, Ingushetia, Kabardino-Balkaria, and Karachay-Cherkessia, as well as the Donetsk and Lugansk People’s Republics and the Zaporizhzhia and Kherson territories, are among the areas affected. There will be restrictions on individual miners and mining pool operations in specific areas.
In addition to outright prohibitions, Russia intends to impose seasonal limits in areas such as Irkutsk, Buryatia, and Zabaikalsky, which are known for their high crypto mining activities. The winter months, when energy use is at its peak, will see the adoption of these The limits will take effect from January 1 to March 15 in 2025, and they will extend from November 15 to March 15 in subsequent years. years.
This decision represents a more sophisticated approach than previous suggestions, which originally encompassed 13 regions, including Irkutsk, one of Russia’s key mining hubs. We expect these laws to cause operational issues for companies like BitRiver, which rely on the region’s low-cost electricity.
The decision is consistent with Russia’s recently implemented cryptocurrency mining rules, which govern mining activity and require rigorous compliance. These rules, passed in late 2024, require registered organizations to report their earnings and digital asset holdings to the authorities.
These regulations still permit cryptocurrency mining in Russia, but the government’s decision to implement targeted limits demonstrates its efforts to balance energy use and industrial demand. We project increased scrutiny on energy-intensive locations as crypto mining expands to ensure long-term power usage.
