Russia Implements Year-Round Crypto Mining Ban in Irkutsk Oblast

According to ShibDaily, Moscow has imposed a comprehensive ban on cryptocurrency mining in several districts of Irkutsk Oblast, a region previously known for its affordable energy and dubbed the 'mining capital of Russia.' This area had attracted numerous miners due to its low electricity costs. Initially intended to curb power consumption during the winter months, the ban will now be enforced throughout the year until 2031. This decision follows federal authorities' response to local appeals aimed at reducing the strain on the region's electrical grid. Russian Prime Minister Mikhail Mishustin officially signed the new restrictions, which took effect on April 7 and will remain in place until March 15, 2031. The ban impacts nearly 20 districts in the southern part of Irkutsk Oblast, including major cities such as Irkutsk, Zima, Sayansk, and others like Svirsk, Tulun, Usolye-Sibirskoye, and Cheremkhovo. Igor Kobzev, the governor of Irkutsk Oblast, announced the new restrictions on social media, stating, 'We have repeatedly addressed the Government of the Russian Federation with this initiative, and they have heard us.' Kobzev explained that the Irkutsk region is facing significant socio-economic challenges due to the heavy burden mining activities have placed on the local power grid. He emphasized that the decision to request the ban was driven by the 'excessively high load' mining imposes on the region's energy infrastructure. Additionally, Kobzev noted that the increased electricity demand from crypto mining operations has led to frequent power outages and limited the capacity needed to supply other users on the grid. 'In particular, we are seeing an energy deficit in the south of Irkutsk,' he stated, adding that the temporary ban, which ran from January to March, successfully freed up 320 MW of generation capacity. The governor also revealed that the temporary ban helped the region save approximately 146 billion rubles ($1.7 billion), which can now be invested in developing new power generation infrastructure. He described the federal government's decision as a crucial step in addressing the region's ongoing energy shortages. As of 2025, cryptocurrency mining in Russia is under increasing scrutiny and regulatory changes due to concerns about its impact on the country's energy resources. The Russian government is intensifying efforts to regulate mining operations, cracking down on illegal activities that often strain local power grids. These actions have led to some surprising and concerning discoveries, such as the recent uncovering of an illicit mining farm hidden in an unlikely location. In March, Russian authorities discovered an illegal cryptocurrency mining operation concealed within a three-story orphanage in the Siberian village of Kazaqiye, located in the Irkutsk region. Local authorities seized 96 mining rigs in the Bokhansky District, uncovering a scheme allegedly orchestrated by an unnamed non-profit organization. The mining equipment had been installed within the orphanage, which, despite still being registered as an educational facility, is currently not operational.