Russia bans and Restrict Cryptocurrency Mining from 2025

The Russian government has banned cryptocurrency mining in 10 regions until March 2031, to control domestic energy consumption.

Russia has announced new measures to control cryptocurrency mining, including a complete ban and seasonal restrictions, starting early next year.

According to TASS, the ban will apply for six years, from January 1, 2025 to March 15, 2031, in 10 regions of Russia, including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk, Zaporizhzhia and Kherson.

The order will affect both individual crypto mining operations and mining pools, aiming to reduce the risk of destabilizing the country's energy system.

Instead of a complete ban, key regions such as Irkutsk, Buryatia and Zabaikalsky will impose restrictions during the winter, when energy demand is high.

• In 2025, the restrictions will apply from January 1 to March 15.

• In subsequent years, the restrictions will last from November 15 to March 15.

Initially, the government planned to ban mining in 13 regions, including Irkutsk, a major mining hub thanks to cheap electricity. However, the ban has been adjusted to allow mining to continue there with seasonal restrictions.

Irkutsk plays an important role in Russia's crypto mining sector. This is where BitRiver, one of the industry's leading companies, has its largest data center. The Bratsk data center, which BitRiver has been operating since 2019, takes advantage of cheap electricity to reduce mining costs.

Russia has introduced more flexible controls, not only to ensure the stability of the energy system but also to maintain the role of key regions such as Irkutsk in the mining industry. However, there are concerns about the impact of these policies. When asked, BitRiver declined to comment on how the new measures would affect its operations.

Russia legalized cryptocurrency mining in July 2024, and the law officially came into effect last month. However, the country still prohibits the use of cryptocurrencies as a legal means of payment in the country, meaning they cannot be used to make purchases or pay for ordinary services. Notably, Russia has allowed the use of cryptocurrencies in cross-border transactions, in order to avoid international sanctions following the conflict with Ukraine.