Russia will restrict crypto mining in areas with ongoing energy shortages, according to Deputy Minister of Energy Yevgeny Grabchak. The impending ban affects regions such as the Far East, southwestern Siberia, and the South, which struggle to support crypto mining’s high power demands.
State news agency TASS confirmed the ban, citing limited energy availability in these areas. Grabchak noted that the power shortages may persist until 2030, making long-term mining unsustainable.
Enforcement actions against unauthorized or home-based crypto miners are already in effect. On October 28, Russian law enforcement reportedly detained a Novosibirsk resident accused of electricity fraud linked to his crypto-mining operations. The suspect allegedly earned around 12 million rubles (approximately $123,000) through mining.
This move comes after President Vladimir Putin signed a digital asset regulation law, effective November 1. The law grants the government authority to ban or limit crypto mining in select regions or territories, depending on energy needs and infrastructure capacity. It also outlines procedures for imposing restrictions and controls participation in mining pools.
Mining pools distribute computational loads using specialized servers, placing additional stress on the energy grid. By managing these aspects, the government aims to reduce strain on power resources while maintaining regulatory control over crypto activities.
Putin’s new law focuses on digital asset circulation oversight, allowing the government to regulate crypto mining based on regional energy needs. Russia’s recent actions signal increased scrutiny of crypto activities, particularly those impacting the country’s energy infrastructure.
