Russia will enforce a regional ban on Bitcoin mining from January 1, 2025, through March 15, 2031. The decision, reported by local news outlet Tass on December 24, will impact ten regions, including Dagestan, Ingushetia, Kabardino-Balkaria, and others.
Affected Regions and Timelines
The ban extends to Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, as well as Zaporizhia and Kherson. Additionally, parts of the Irkutsk region, Buryatia, and Zabaikalsky Krai will also face restrictions.
This prohibition applies during peak energy consumption periods. Specifically, the mining ban will be enforced from January 1 to March 15 in 2025 and from November 15 to March 15 in subsequent years.
Restrictions on Digital Mining Activities
According to the Russian Cabinet of Ministers, the ban prohibits digital currency mining and participation in mining pools within these regions. Officials emphasized that the country’s energy regulator might revise the list of restricted areas to adapt to shifting energy demands.
Addressing Energy Infrastructure Issues
The ban likely stems from electricity shortages and unpaid energy bills in affected regions. Authorities aim to balance power distribution and optimize resource allocation.
Deputy Energy Minister Yevgeny Grabchak highlighted that regions in the far east, southern areas, and southwestern Siberia lack the infrastructure needed for large-scale mining operations. These energy issues are expected to continue through 2030.
Regulatory Framework for Cryptocurrency
This mining restriction coincides with Russia’s recent implementation of its cryptocurrency tax framework. The new law enforces compliance with tax regulations for cryptocurrency-related activities, indicating a broader effort to tighten industry oversight.
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