Russia imposes 6-year crypto mining ban in 10 regions

Russia has announced a six-year ban on cryptocurrency mining in 10 regions, effective from January 1, 2025, through March 15, 2031.

These regions include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk, Zaporizhzhia, and Kherson.

Additionally, some areas, such as Irkutsk, Buryatia, and the Trans-Baikal Territory, will face seasonal mining restrictions.

Mining operations will be paused from January 1 to March 15, 2025, and every subsequent winter season from November 15 to March 15.

According to TASS, Russia’s state news agency, these measures are part of an effort to regulate energy consumption and ensure grid stability.

The government has noted that these restrictions may be revised depending on decisions from the legal committee overseeing energy sector development.

“This is the so-called interregional cross-subsidisation, where the low cost of electricity in regions with regulated contracts is effectively compensated by producers and consumers in other regions. After market liberalisation in this area, the restrictions could potentially be lifted, provided, of course, there is sufficient capacity,” explained Sergei Kolobanov, Deputy Director of the Center for Economics of the Fuel and Energy Complex at the CSR, speaking to TASS.

Although Russia legalised crypto mining in August 2021, the country's share of the global Bitcoin (CRYPTO:BTC) hashrate has declined sharply.

According to data from Cambridge University, Russia’s share dropped from 11% in 2021 to 4.7% in 2024.

This has coincided with a decrease in the average monthly hashrate from 13.6 Eh/s to 8.7 Eh/s.

While Russia’s regulations have yet to significantly boost domestic mining activity, the government has taken steps to support cryptocurrencies, including allowing cross-border payments and preparing state-backed exchanges.