Russia will implement a six-year ban on cryptocurrency mining in ten regions, starting in January 2025 and lasting until March 2031. This choice is part of a larger effort to control energy use and stabilize the power grid as electricity demand rises.
This ban affects Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk, Zaporizhzhia, and Kherson. Also, places like Irkutsk, Buryatia, and the Trans-Baikal Territory will have mining limits during busy energy times from January 1 to March 15 and from November 15 to March 15 every year.
The Russian government might change these restrictions through its legal committee that manages energy policies, depending on how things develop. The main aim is to evenly distribute electricity use in different areas to avoid shortages and maintain economic stability.
Sergei Kolobanov, a deputy director at the Center for Economics of the Fuel and Energy Complex, pointed out that electricity subsidies play a big role in this decision. Low-cost energy in some areas can create financial problems for producers and consumers in other places.
Even after legalizing cryptocurrency mining in August 2023, Russia’s portion of the global Bitcoin mining hashrate dropped from 11% in 2021 to only 4.7% in 2024. The United States currently holds a 37.8% share.
Russia is looking into adding cryptocurrencies to its financial system, enabling cross-border crypto payments, and thinking about state-backed exchanges, even though there are still regulatory challenges.
Lawmakers are talking about possibly holding Bitcoin reserves to improve financial stability during ongoing international sanctions. These changes show how Russia is carefully adapting its stance on cryptocurrency rules.
