The Russian bear attacks the cryptocurrency mining industry with a surprising decision

Russia suddenly decided to ban the cryptocurrency mining industry in several major regions, starting next year, 2025.

Russia thus aims to address the electricity shortage crisis and reduce the costs associated with energy subsidies, with the ban continuing until mid-March 2031.

It seems that the Russian bear, angry at the energy shortage, has decided to show its fangs to digital currencies in the coming years, according to experts’ expectations.

Target areas and seasonal restrictions

The ban decision includes major regions in Russia, including: Dagestan, Ingushetia, Chechnya, in addition to the popular republics of Donetsk and Lugansk, which suffer from an imbalance in electricity supplies.

Additional seasonal restrictions will also be imposed on the regions of Irkutsk, Buryatia, and the Trans-Baikal Territory, and mining activities will be suspended during periods of peak energy consumption, which are between January and March 2025, and from November to March in the following years.

Objectives of the decision and statements of officials

Sergey Kolobanov, Deputy Director of the Center for Economics of Fuel and Energy Industries, said that the restrictions aim to address the electricity shortage in some regions and improve mutual support between them.

For his part, Vladimir Kleimanov, Director of the Center for Regional Policy, pointed out that residents and companies in central Russia often bear the costs of subsidized electricity for the affected areas.

Regulation of mining in Russia

Cryptocurrency mining has been legal in Russia since August 2024, under a law signed by President Vladimir Putin.

The law requires miners to register with the Federal Tax Authority and provide detailed information about their assets and wallet addresses to ensure oversight. Individuals are also allowed to engage in mining within a monthly consumption limit of 6,000 kilowatt-hours.