Russia Restricts Crypto Mining in Energy-Strapped Regions
Russia’s Deputy Minister of Energy Yevgeny Grabchak announced that the country will restrict crypto mining in several regions due to ongoing energy shortages. The state news agency TASS confirmed the impending ban, citing electricity deficits in areas such as the Far East, southwestern Siberia, and the South.
These regions lack the infrastructure to handle large-scale mining operations, and power shortages may persist until 2030. The restrictions aim to prevent the strain on power resources, as crypto mining’s high power demands exacerbate energy deficits.
Enforcement actions against illegal or home-based crypto miners are already underway. A Russian law enforcement agency recently 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.
President Vladimir Putin signed a digital asset regulation law that grants the Russian government authority to ban or limit crypto mining in select regions or territories, depending on energy needs and infrastructure capacity. The law focuses on the oversight of digital asset circulation and outlines procedures for imposing restrictions.
The regulation includes measures to control participation in mining pools, which use specialized servers to distribute computational loads, placing additional stress on the energy grid. The government aims to reduce the strain on power resources while maintaining regulatory control over crypto activities.
