According to local reports, the Russian government will ban crypto mining activities in ten key regions following the recent enactment of the new industry-related laws. It will also implement seasonal bans on other territories and potentially add more areas to the list amid the ongoing electrical crisis in the country.
Related Reading: Cardano Leader Charles Hoskinson Pushes Crypto Unity With Democratic Senators
Key Regions Face 6-Year Mining Ban
On December 24, local news agency TASS revealed that the Russian government approved a list of key regions and territories where crypto mining activities will be banned starting January 1, 2025. The ban aims to “maintain the balance of energy consumption” and will be effective until March 15, 2031.
According to the report, the measure includes a six-year ban on all crypto mining and mining pool activity in the Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk and Lugansk People’s Republics, Zaporizhzhya, and Kherson regions.
Additionally, the prohibition is temporarily extended to some territories of the Irkutsk region, Buryatia, and Zabaikalsky Krai during the energy consumption peaks. These areas will face a seasonal ban from January 1 to March 15, 2025, and from November 15 to March 15 in the following years.
The government also noted that the list of regions is not final and will be modified based on potential electricity sector developments. Experts told the local news agency that the ban is related “not only to the local electrical shortages but also to electricity payment privileges in some regions.”
Sergei Kolobanov, deputy director of the Center for the Economy of Fuel and Energy Sectors, explained that the ban “is synchronized with the end of the transition period for this benefit’s elimination.”
Crypto Mining Landscape In Russia
In September, Abdulmuslim Abdulmuslimov, prime minister of the southern Republic of Dagestan, urged the Russian government to take stronger actions against illegal mining centers in the region, asking authorities to pay more attention to the evolving methods miners develop to operate.
The following month, Deputy Minister of Energy Evgeny Grabchak revealed that the ongoing electrical crisis in key areas made offering large power capacities nearly impossible until 2030. As reported by Bitcoinist, Evgeny Grabchak announced that all kinds of mining would be banned in specific regions of Russia following a recently signed law by President Vladimir Putin.
In October, President Putin approved a law to regulate digital currency turnover, aiming to expand the government’s control over crypto mining activities. This legislation took effect on November 1 and allows the Russian government to prohibit mining activities in specific regions or individual territories and determine the conditions and cases of the restrictions.
Moreover, the amendments enabled the government to regulate the activities of companies providing mining infrastructure. It also allowed the Federal Tax Service to control the miners’ register, which the Ministry of Digital Development handled.
Notably, the registry is part of the legislation signed in August to give the mining sector a legal status within the country. Since it took effect on November 1, over 150 firms have applied for a crypto mining license to operate legally in Russia.
Related Reading: Hyperliquid (HYPE) Threatened By North Korean Hackers: What Investors Need To Know
Bitcoin is trading at $96,299 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
According to local reports, the Russian government will ban crypto mining activities in ten key regions following the recent enactment of the new industry-related laws. It will also implement seasonal bans on other territories and potentially add more areas to the list amid the ongoing electrical crisis in the country.
Related Reading: Cardano Leader Charles Hoskinson Pushes Crypto Unity With Democratic Senators
Key Regions Face 6-Year Mining Ban
On December 24, local news agency TASS revealed that the Russian government approved a list of key regions and territories where crypto mining activities will be banned starting January 1, 2025. The ban aims to “maintain the balance of energy consumption” and will be effective until March 15, 2031.
According to the report, the measure includes a six-year ban on all crypto mining and mining pool activity in the Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk and Lugansk People’s Republics, Zaporizhzhya, and Kherson regions.
Additionally, the prohibition is temporarily extended to some territories of the Irkutsk region, Buryatia, and Zabaikalsky Krai during the energy consumption peaks. These areas will face a seasonal ban from January 1 to March 15, 2025, and from November 15 to March 15 in the following years.
The government also noted that the list of regions is not final and will be modified based on potential electricity sector developments. Experts told the local news agency that the ban is related “not only to the local electrical shortages but also to electricity payment privileges in some regions.”
Sergei Kolobanov, deputy director of the Center for the Economy of Fuel and Energy Sectors, explained that the ban “is synchronized with the end of the transition period for this benefit’s elimination.”
Crypto Mining Landscape In Russia
In September, Abdulmuslim Abdulmuslimov, prime minister of the southern Republic of Dagestan, urged the Russian government to take stronger actions against illegal mining centers in the region, asking authorities to pay more attention to the evolving methods miners develop to operate.
The following month, Deputy Minister of Energy Evgeny Grabchak revealed that the ongoing electrical crisis in key areas made offering large power capacities nearly impossible until 2030. As reported by Bitcoinist, Evgeny Grabchak announced that all kinds of mining would be banned in specific regions of Russia following a recently signed law by President Vladimir Putin.
In October, President Putin approved a law to regulate digital currency turnover, aiming to expand the government’s control over crypto mining activities. This legislation took effect on November 1 and allows the Russian government to prohibit mining activities in specific regions or individual territories and determine the conditions and cases of the restrictions.
Moreover, the amendments enabled the government to regulate the activities of companies providing mining infrastructure. It also allowed the Federal Tax Service to control the miners’ register, which the Ministry of Digital Development handled.
Notably, the registry is part of the legislation signed in August to give the mining sector a legal status within the country. Since it took effect on November 1, over 150 firms have applied for a crypto mining license to operate legally in Russia.
Related Reading: Hyperliquid (HYPE) Threatened By North Korean Hackers: What Investors Need To Know
Bitcoin is trading at $96,299 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
