As a researcher with a keen interest in the dynamic world of cryptocurrencies and their impact on global energy consumption, I find myself both intrigued and concerned by Russia’s latest decision to extend its winter ban on local crypto mining operations for six years.
For the next six years, the Russian government has prolonged its prohibition on cryptocurrency mining within local regions due to escalating energy usage in the country, which has become a significant concern. Just last month, these crypto mining activities were temporarily halted during winter by government decree. Now, this ban has been expanded to cover a longer period.
As per reports from local media Tass, the Russian government has decided to prohibit cryptocurrency mining, which includes participating in mining pools, in certain regions and territories starting from January 1, 2025. This ban will last until March 15, 2031.
Russia Bans Crypto Mining in Select Regions
The regions currently under consideration for impact are preliminarily set as Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk regions, as well as Zaporizhia and Kherson. However, the ministers emphasized that this list may undergo modifications depending on the government’s decisions regarding energy projects.
Apart from the specified zones, the government has temporarily banned cryptocurrency mining in certain regions within Irkutsk, Buryatia, and Zabaikalsky Krai as of 2025. During periods of highest energy consumption (from January 1 to March 15 initially, followed by November 15 to March 15 annually thereafter), these areas will temporarily halt mining activities to conserve energy.
The Russian government’s action is driven by the necessity to keep their energy usage stable. Last year, Russia ranked as the world’s second-biggest crypto miner following the U.S., and since then, they have been consuming at least 16 billion kilowatt-hours of electricity annually for these activities.
High Energy Consumption Issue
At present, crypto mining uses around 1.5% of Russia’s total energy, which has posed difficulties for areas with extreme climates. Furthermore, excessive energy usage has caused an unbalanced distribution of electricity bills across various regions in the country. The government is actively working to rectify or eradicate this imbalance.
According to Sergey Kolobanov, serving as deputy director of the Energy Sector Economics Center at the Strategy Research Institute, he stated:
In simpler terms, interregional cross-subsidization refers to a situation where the cheaper electricity rates in some areas (under regulated contracts) are effectively balanced out by producers and consumers in other regions. The rules governing cryptocurrency mining are being adjusted to match the end of the transition period, aiming to remove this cost advantage.
It’s worth noting that Russia has recently made it legal for cryptocurrency mining and established a compulsory registration system. This system enables the Federal Tax Service to access data about miners’ digital assets and crypto wallets.
Read More
- SUI PREDICTION. SUI cryptocurrency
- Why Sona is the Most Misunderstood Champion in League of Legends
- House Of The Dead 2: Remake Gets Gruesome Trailer And Release Window
- Skull and Bones: Players Demand Nerf for the Overpowered Garuda Ship
- Last Epoch Spellblade Survival Guide: How to Avoid the One-Shot Blues
- The Great ‘Honkai: Star Rail’ Companion Sound Debate: Mute or Not to Mute?
- US Blacklists Tencent Over Alleged Ties With Chinese Military
- Destiny 2: Is Slayer’s Fang Just Another Exotic to Collect Dust?
- Square Enix Boss Would “Love” A Final Fantasy 7 Movie, But Don’t Get Your Hopes Up Just Yet
- Gaming News: Rocksteady Faces Layoffs After Suicide Squad Game Backlash
2024-12-24 20:16