Ten Russian regions ban crypto mining

Crypto mining in ten Russian regions has been limited or completely banned from Wednesday. The restrictions introduced in areas facing electricity shortages will remain in force until March 15, 2031.

The list of regions affected by the ban includes the southern republics of Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya, along with the new Russian regions of Donetsk, Lugansk Zaporozhye, and Kherson. The temporary mining restrictions have been introduced at peak energy consumption periods in three other regions – Irkutsk, Buryatia, and Transbaikal.

This comes as part of broader efforts to manage energy resources efficiently and address power shortages, while accommodating industrial requirements.   

Last year, Russian President Vladimir Putin signed legislation legalizing cryptocurrency mining. The document identifies the process as part of turnover rather than the issuance of digital currency. It also says that only legal entities and individual entrepreneurs registered with the government are allowed to engage in cryptocurrency mining. Individual miners can take part without registering, provided their energy consumption remains within government-set limits.

Speaking at a government meeting on economic issues in July, Putin raised the issue of regulating cryptocurrencies and digital assets, calling it a promising economic area. He stressed that it is important for Russia “to seize the moment” to promptly create the legal framework and regulations, develop infrastructure, and create the conditions for the circulation of assets of the kind, both within the country and in economic relations with foreign partners.