Federal authorities in Russia are set to expand a full ban on cryptocurrency mining that’s already covering about a dozen of its territories.
Miners in another two regions, who only recently shut down their crypto farms for the winter, may soon be completely prohibited from minting digital coins.
Russian government to stop mining operations in two Siberian territories
The executive power in Moscow intends to impose a year-round ban on crypto mining in southern Buryatia and Transbaikal, where restrictions on the activity are temporary at this point.
The plan has been exposed by the Russian press. On Tuesday, Kommersant quoted a draft protocol for a meeting of the government commission on the development of the electric power industry.
According to the document seen by the leading Russian business daily, the permanent measure will be introduced next year.
Last month, Russian authorities halted mining in the Republic of Buryatia and Zabaykalsky Krai during winter months, when electricity consumption peaks.
The seasonal pause was supposed to remain in place between November 15, 2025 and March 2026, as reported by Cryptopolitan.
The southern parts of Transbaikal, Buryatia, and Irkutsk Oblast are all supplied by the same segment of the Unified Energy System of Siberia, the Russian newspaper noted.
Crypto mining in the south of Irkutsk, sometimes called the mining capital of Russia, was banned earlier this year.
Later, officials from the local government claimed the measure had released about 320 MW in generation capacity.
The first indication that the full ban will spill over to the adjacent two regions came from the Ministry of Energy in early November, despite having declared in September it saw no reason to expand it.
Speaking at a meeting at the Federation Council, the upper house of Russian parliament, a representative of the department stated:
Russia maintains ambiguous policy regarding crypto mining
The Russian Federation legalized crypto mining in the second half of 2024, with intentions to benefit from its competitive advantages in this market, namely its abundant energy resources and appropriate climatic conditions.
The minting of digital currencies actually became the country’s first comprehensively regulated crypto-related business, recognized as a legitimate industrial activity. Those who want to engage in it are simply required to register for tax purposes.
However, low and often subsidized electricity rates in certain corners of the country have become a magnet for miners, both licensed and illegal, leading to energy shortages and overloading of the grid as a result of the increasing concentration of mining enterprises.
This prompted regional and federal authorities to initially restrict mining during the coldest periods of the year and, in a number of cases, to ultimately ban mining altogether for the next six years, until the spring of 2031.
The radical measure now covers no less than 10 Russian regions, spanning from Siberia to the North Caucasus and even the occupied territories of Eastern Ukraine.
The somewhat ambiguous attitude of the powers in Moscow towards cryptocurrency mining has been underscored by the statements of various Russian officials.
In July, President Putin justified the restrictions with the growing power deficits, blaming Bitcoin miners for using all the surplus energy in some regions.
But in December, one of his top aides, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, almost praised mining for becoming Russia’s new “hidden export” amid sanctions limiting its foreign trade. He urged adding it to the country’s balance of payments.
In the meantime, the Russian government has been trying to bring more of those involved in the sector out of the shadow economy, as only about 30% of the mining businesses are currently registered with the FNS, the federal tax service.
A crackdown on illegal crypto farms running on stolen electricity has been intensifying as well. More than 100 such facilities have been dismantled since the beginning of this year alone, in just one of the regions where the issue has been exacerbating.
Employees of local power utilities are now regularly conducting joint raids with the participation of officers from law enforcement agencies, while the methods employed by both sides in this struggle are increasingly sophisticated.
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Source: https://www.cryptopolitan.com/russia-ban-crypto-mining-in-regions/
