- Russia bans crypto mining activity in 10 selected regions for 6 years, starting from 2025.
- The purpose of the crypto mining ban is to balance energy consumption and to prevent power outages.
The Russian government plans to ban crypto mining activity in 10 selected regions to reduce energy consumption. For over 6 years, people in these regions will not be able to mine digital currencies and also participate in mining pools.
As per the local new agency TASS, Russia bans crypto mining in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk, and Lugansk People’s Republics, and Zaporozhye, and Kherson regions. In addition to these regions, some areas of Irkutsk, Buryatia, and the Zabaikalsky will also be banned from crypto mining temporarily.
The Russian government ban on crypto mining will be effective from January 1, 2025 to March 15, 2031. However, in some areas the ban will remain in force from Jan 1 to March 15 in 2025 and from Nov 15 to March 15 in the following years.
Russia Bans Crypto Mining to Balance Energy Consumption
The list of regions banned from crypto mining in Russia is not final. And, it will be adjusted based on the decisions of the electric power industry of the country, as per TASS news report. The main purpose behind this ban is to balance energy consumption and to prevent power shortages in the country.
However, the Russian government is also taking the needs of the crypto mining industry into account. That is the reason why it is banning crypto mining in some areas only temporarily. It’s not been long since crypto mining was legalized in Russia.
In November, Russia made headlines several times for approving crypto mining and proposing new tax law for crypto mining and trading. The Federal Tax Service made crypto mining legal in November, provided the information on assets mined and addresses of crypto wallets reported to its organization.
President Vladimir Putin signed a new law limiting crypto mining to certain areas to control energy usage in winter peak hours. The country considers cryptocurrency as property and trading profits will be taxed similar to how securities transactions are taxed in the country.
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