Russia considers limiting crypto mining in specific regions

The Russian Energy Ministry has proposed periodic restrictions on cryptocurrency mining in regions experiencing energy shortages.

This move follows the enactment of a new national cryptocurrency law earlier this month, which grants authorities the right to impose such measures.

"Indeed, there is a proposal from the Energy Ministry; we will consider it at a meeting of the governmental commission on November 18," a source confirmed to TASS, Russia's official news agency.

The Ministry indicated that these restrictions are necessary to manage energy resources efficiently, especially during periods of anticipated shortages.

“It is reasonable to ban the mining of digital currency in areas facing critical regulatory and fiscal parameters and regions with subsidised electricity prices during forecasted shortages,” the statement highlighted.

Regions expected to be impacted include the Irkutsk Region, Buryatia, Trans-Baikal, Karachay-Circassian, Kabardino-Balkaria, North Ossetia-Alania, Ingushetia, Chechnya, Dagestan, as well as the Kherson, Zaporizhzhia, Donetsk People’s Republic (DPR), and Lugansk People’s Republic (LPR) regions.

These mining limitations are set to take effect from December 1, 2024, to March 15, 2025, with further annual bans from November to March continuing at least until 2031.

The proposal comes as no surprise following remarks by Russian Deputy Energy Minister Yevgeny Grabchak last month.

He emphasised that due to energy shortages, particularly in Siberia, the state would need to enforce such limitations.

Grabchak also pointed out that Russia would be unable to guarantee sufficient energy capacities for large-scale operations through 2030.