Russia restricts cryptocurrency mining in 13 regions to save electricity

1.webp

The Russian government is considering restricting cryptocurrency mining in 13 power-hungry regions to avoid energy shortages during peak season, Deputy Prime Minister Alexander Novak said on November 19.

2.webp

The Russian government plans to impose restrictions on cryptocurrency mining in key regions such as Irkutsk, as well as the Ukrainian-occupied regions of Donetsk, Luhansk, Zaporizhzhia, and Kherson.

Restrictions are scheduled to last until 2031.
The Russian government is planning to impose restrictions on cryptocurrency mining in regions in Siberia, including Irkutsk, the Buryatia Republic and Zabaikalsky, until 2031 during the autumn-winter heating season.

Similar measures are also proposed in regions such as Dagestan, North Ossetia-Alania, Ingushetia, Chechnya, Kabardino-Balkaria and Karachay-Cherkess.

Russia's Irkutsk is one of the key regions for cryptocurrency mining
If approved , the cryptocurrency mining restrictions would hit companies like BitRiver hard, which rely on cheap electricity in the Irkutsk region, which is also home to BitRiver’s largest data center, which opened in 2019 in Bratsk.

3.webp

 

Siberian regions like Irkutsk attract cryptocurrency miners thanks to their hydropower renewables, low electricity prices and cold climate. The Bratsk Hydroelectric Power Plant, with a capacity of 4,500 megawatts, is one of Russia’s largest hydroelectric power producers.

Russian President Vladimir Putin signed a law on cryptocurrency mining in August and October 2024, laying the foundation for a regulatory framework for the industry. However, the law has been controversial due to legal uncertainty and restrictions such as banning mining by foreigners and allowing the government to ban mining in areas prone to power shortages.

Latest News