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Russia plans energy-based crypto mining limits in 13 regions

Russia plans energy-based crypto mining limits in 13 regions

GrafaGrafa2024/11/21 10:37
By:Liezl Gambe

The Russian government is proposing new restrictions on cryptocurrency mining across 13 regions to address electricity shortages during peak demand seasons.

Deputy Prime Minister Alexander Novak outlined the proposal during a government commission meeting on November 19, focusing on the power sector's capacity challenges.

The restrictions would target regions like Irkutsk, a major crypto mining hub known for its cheap electricity and access to renewable hydroelectric power.

The measures would also extend to occupied Ukrainian territories, including Donetsk, Luhansk, Zaporizhzhia, and Kherson, as well as Dagestan, Chechnya, and North Ossetia.

If approved, these limitations would apply during autumn and winter until 2031.

The government stated that the restrictions aim to stabilise electricity supplies in regions prone to power shortages.

Siberian regions, such as Irkutsk, have attracted mining firms due to low energy costs and favorable climates.

Bratsk, in Irkutsk, hosts a major hydroelectric power station with a capacity of 4,500 megawatts, making it a critical site for mining operations.

The proposed restrictions follow crypto mining regulations signed by President Vladimir Putin earlier this year.

These laws provided a regulatory framework for the sector but imposed restrictions, including banning foreign entities from mining and allowing regional mining bans to protect energy resources.

Industry players have expressed concerns over legal uncertainties tied to these regulations.

If implemented, the restrictions could significantly impact mining companies dependent on regions like Irkutsk, potentially reshaping Russia’s role in global cryptocurrency mining.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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