Cryptocurrency Mining Ban Overview
Beginning January 1, 2025, certain regions in Russia will see a prohibition on cryptocurrency mining, lasting until March 15, 2031. This ban, as reported by the state news agency TASS, is part of an effort to alleviate current energy concerns by imposing seasonal limitations on mining operations in areas heavily engaged in this activity.
Regions Affected
The regions affected by this decision include Dagestan, Ingushetia, Chechnya, and the contested territories of the Donetsk and Luhansk People’s Republics. These areas have been noted for their struggles with electricity shortages and uneven power distribution, often worsened by local mining practices. Additionally, similar seasonal restrictions will apply to areas like Irkutsk, Buryatia, and the Trans-Baikal Territory.
Details of the Mining Restrictions
Mining activities in these specified locations will be halted during peak energy consumption periods: from January 1 to March 15, 2025, and again from November 15 to March 15 in subsequent years.
Officials have stated that the primary goals of these restrictions are to tackle the ongoing electricity shortages and to reduce financial strains caused by interregional subsidies. It has been pointed out that residents and businesses in central Russia often end up covering the costs of electricity supplied to regions in the North Caucasus.
In August 2024, cryptocurrency mining gained legal status in Russia after President Vladimir Putin signed relevant legislation, which took effect on November 1, 2024. This new law introduced several regulations requiring miners to register with the Federal Tax Service. Moreover, it mandates that they provide detailed information regarding their assets and cryptocurrency wallet addresses to enhance regulatory oversight. While corporate miners must complete the registration process, individual miners are allowed to operate with a limit of 6,000 kWh of electrical consumption each month.
Source: CryptoBriefing
