YEREVAN (CoinChapter.com) — Russia plans to impose restrictions on cryptocurrency mining across 13 regions, citing electricity shortages during high-demand seasons. This move comes after the government adopted new laws regulating the mining industry.
On Nov. 19, Deputy Prime Minister Alexander Novak led a meeting discussing energy management strategies. Officials proposed curbing mining activities in regions facing power supply issues to prevent disruptions during the peak winter months.
Key areas under review include Irkutsk and Siberian regions like the Republic of Buryatia and Zabaikalsky Krai. Additionally, territories under Russian occupation, including Donetsk, Luhansk, Zaporizhzhia, and Kherson, are expected to face similar measures.
Irkutsk Crypto Mining Faces Long-Term Restrictions
The proposed restrictions will last until 2031 during the autumn-winter heating season. This plan is part of a long-term effort to stabilize electricity supplies.
The Irkutsk region, a significant hub for crypto mining, is expected to be heavily affected. It hosts some of Russia’s most prominent mining operations, including BitRiver, which operates its largest data center in Bratsk, established in 2019.
Bratsk hosts one of the world’s largest hydroelectric power stations. Source: ReutersSiberia, including Irkutsk, has historically attracted miners due to its low electricity costs, abundant hydropower, and favorable climate. Bratsk’s hydroelectric power station, producing 4,500 megawatts, is among the largest in the country.
Siberia Electricity Shortages Drive Regulatory Actions
Siberian regions, known for their renewable energy potential, now face electricity shortages due to the growing energy demand from crypto mining. The government aims to reduce this strain by restricting mining operations during critical energy use periods.
Regions in the North Caucasus, including Dagestan, Chechnya, and Kabardino-Balkaria, are also expected to face similar measures. Officials believe these restrictions will help ensure reliable energy supply during the harsh winter months.
Crypto Mining Laws in Russia Add Operational Challenges
In August and October 2024, President Vladimir Putin signed new crypto mining laws. These laws banned foreign entities from mining in Russia and allowed restrictions in energy-challenged regions.
The regulatory framework has faced criticism for legal ambiguities, particularly concerning the specific conditions for mining operations. Industry participants argue that these uncertainties complicate long-term planning for mining businesses.
If approved, the proposed Russia crypto mining restrictions could significantly impact mining hubs.
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