Russia To Ban Cryptocurrency Mining In Select Regions

According to Cointelegraph, the Russian government has announced a ban on cryptocurrency mining in ten regions, effective from January 1, 2025, to March 15, 2031. This decision, reported by the local news agency TASS on December 24, aims to address energy concerns and align with the country's cryptocurrency mining laws enacted in August and October 2024. The regions affected by the ban include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, as well as the Zaporizhzhia and Kherson regions. The prohibition will impact both mining pool activities and individual cryptocurrency mining operations. In addition to the comprehensive bans, Russia will implement seasonal restrictions in three Siberian regions to manage energy consumption during peak winter months. These restrictions will apply to parts of the Irkutsk, Buryatia, and Zabaikalsky regions. Initially, the seasonal limitations will be enforced from January 1 to March 15, 2025, and will extend from November 15 to March 15 in subsequent years. This approach reflects a more measured strategy compared to the initial proposal by the government in November, which suggested banning crypto mining in 13 regions, including the significant mining hub of Irkutsk. The Irkutsk region is particularly notable for its role in the Russian mining industry, with major firms like BitRiver benefiting from the area's affordable electricity. BitRiver, which established its first and largest data center in Bratsk in 2019, is among the companies potentially affected by these new regulations. Cointelegraph reached out to BitRiver for comments on how these restrictions might impact their operations, but no response was received at the time of publication.