Can Ahmet 
The Russian government has approved a decree banning cryptocurrency mining in certain regions starting January 1, 2025. According to the TASS news agency, these restrictions will remain in effect until March 15, 2031. The decision aims to balance energy consumption, considering industrial demands.
Which Regions Will Be Affected?
The government has prohibited digital currency mining and participation in mining pools in the following regions:
- Dagestan
- Ingushetia
- Kabardino-Balkaria
- Karachay-Cherkessia
- North Ossetia
- Chechnya
- Donetsk
- Lugansk
- Zaporizhzhia
- Kherson
Additionally, in parts of the Irkutsk region, Buryatia, and Zabaykalsky Krai, mining will be temporarily banned during periods of high energy consumption. These periods will be from January 1 to March 15 in 2025 and from November 15 to March 15 in subsequent years.
Energy Balance and Economic Inequality
Energy sector experts suggest that the ban is not only due to energy shortages but also linked to subsidies arising from low electricity tariffs in certain regions. Sergey Kolobanov, Deputy Director of the Center for Economics at CENEF, highlighted that low-cost electricity tariffs in these regions are subsidized by producers and consumers in other areas.
Legal Status of Crypto Mining
As of November 2023, mining activities in Russia have been legalized under certain conditions. Miners are required to report their holdings and wallet addresses to the Federal Tax Service (FTS). Individual entrepreneurs and legal entities must enter data into mining registries, while individual users are allowed to mine digital currencies with a limit of 6,000 kWh of energy consumption per month.
These regulations aim to establish a more sustainable energy management system and reduce economic inequalities within Russia.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.