The Russian government is preparing to ban cryptocurrency mining in certain regions to conserve energy during the winter months. According to a report from the Moscow Times, this ban is being developed by a commission led by Deputy Prime Minister Alexander Novak. The prohibition will be in effect from December 2024 until March 2031.
Regional Restrictions on Cryptocurrency Mining
The restrictions will cover six regions in the North Caucasus and territories of Ukraine occupied by Russia. Additionally, similar bans will be enforced in the Zabaykalski region in Siberia during the winter season. Mining activities in this area will be banned from December 2024 through March 2031. Authorities aim to prioritize the use of energy resources for heating purposes with these measures.
Strict Monitoring of Energy Consumption
New regulations have also been introduced for individual cryptocurrency miners regarding energy consumption. The government has imposed a monthly energy limit of 6,000 kWh on unregistered individual miners. Those exceeding this limit will only be permitted to continue their operations if they register as “individual entrepreneurs.” These regulations aim to control mining activities and balance energy supply.
The new restrictions are designed to optimize Russia’s energy usage and enforce tighter regulations on the cryptocurrency sector. By implementing these bans and limitations, the government seeks to alleviate the energy burden from mining activities while promoting greater transparency in the industry.
