While people’s interest in crypto is increasing ever, Russia has decided to ban the mining activity in 10 regions across the country. The ban will be effective from 1st January 2025 and it plans to remain still until March 15, 2031. As reported by a local news outlet, the Russian government has approved a list of regions where crypto mining as well as participation in mining pools will be banned.
These territories includes including Dagestan, Ingushetia, Karachay-Cherkessia, Kabardino-Balkaria, Chechnya, the Donetsk and Lugansk People’s Republics, North Ossetia and in the Zaporizhzhia and Kherson regions. Additionally, the Russian government has also announced plans to temporarily close crypto mining operations in some areas of the Irkutsk Region, Buryatia and the Zabaykalsky Krai regions due to high energy consumption.
Although the ban is not permanent, it will drive away significant interest from Russian crypto miners when its popularity is increasing. In August, the Russian president Vladimir Putin signed a bill to legalize crypto mining within the country. However, the decision to ban crypto mining has been taken by the Cabinet of Ministers as many regions face electricity shortages during the winter. Cabinet Ministers explain that the objective of these restrictions is to maintain the balance of energy consumption taking into account the demands of industry.
“The residents and businesses in central Russia actually pay part of the costs that arise due to low electricity tariffs in the regions of the North Caucasus or the Far East,” says Vladimir Klimanov, the Director of the Center for Regional Policy at the IPEI of the Presidential Academy. Klimanov believes that the measures introduced by the government should contribute to more equitable conditions for doing business in such a specific area throughout the country.
