Did Vladimir Putin Just Ban Bitcoin Mining In Russia? The Devil Is In The Details

The Russian government has announced a six-year ban on cryptocurrency mining in ten regions, effective Jan. 1, 2025, citing concerns over excessive energy consumption.

The restrictions, set to last until March 15, 2031, will apply to both individual and pool mining operations, Tass reported.

The ban targets Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and the occupied territories of Donetsk and Lugansk People’s Republics, as well as the Zaporizhia and Kherson regions.

The Russian government also issued a temporary ban that restricts operations during peak demand in parts of Irkutsk Region, Buryatia, and the Zabaikalsky Krai between Nov. 15 and March 15, annually.

The move aims to address imbalances in energy consumption and costs.

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According to Sergey Kolobanov, deputy director of the Center for the Economy of Fuel and Energy Sectors, "The ban is connected not only with the local electricity shortage, but also with the benefits for paying for electricity in some regions."

While Russia legalized mining last November, provided that miners register with the Federal Tax Service, these new restrictions highlight the ongoing challenges of managing the energy consumption associated with cryptocurrency mining.

This decision comes three weeks after Russian president Vladimir Putin said that “nobody can ban Bitcoin BTC/USD, pointing out that cryptocurrencies will develop “one way or the other.”

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