Russia Restricts Crypto Mining in Energy-Deficient Regions
Russia’s Deputy Minister of Energy, Yevgeny Grabchak, has announced restrictions on crypto mining in several regions due to ongoing energy shortages. The affected areas, including the Far East, southwestern Siberia, and the South, are experiencing limited energy availability, making it challenging to support crypto mining’s high power demands.
TASS, the state news agency, confirmed the impending ban on October 30, citing Grabchak’s statement that the power shortages may persist until 2030, making it difficult to sustain mining activity long-term. The areas lack the infrastructure to handle large-scale mining operations.
Enforcement actions against illegal or home-based crypto miners are underway. On October 28, a Russian law enforcement agency detained a resident of the Novosibirsk region accused of electricity fraud connected to his crypto-mining operations. The suspect allegedly earned over 12 million rubles (around $123,000) through mining.
Authorities are investigating further potential violations related to the case. Kirill Travin, the Deputy Head of the Ministry of Internal Affairs for the Novosibirsk Oblast, confirmed the arrest.
The restriction comes after President Vladimir Putin signed a digital asset regulation law that will take effect on November 1. The law grants the Russian government the authority to ban or limit crypto mining in select regions or territories, depending on energy needs and infrastructure capacity.
The regulation outlines procedures for imposing restrictions and includes measures to control participation in mining pools, which often use specialized servers to distribute computational loads, placing additional stress on the energy grid. By managing these aspects, the government aims to reduce the strain on power resources while maintaining regulatory control over crypto activities.
Russian Digital Asset Regulation Law
The law focuses on the oversight of digital asset circulation, allowing the government to restrict crypto mining in areas with energy deficits. It also establishes procedures for controlling mining pool participation, aiming to alleviate the strain on power resources.
