Russia has introduced a regional ban on Bitcoin mining, set to begin on Jan. 1, 2025, and remain in effect until March 15, 2031, local Russian media outlet Tass reported on Dec. 24.

According to the report, The decision affects ten regions, including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, as well as the Zaporizhia and Kherson regions. The restriction also extends to parts of the Irkutsk region, Buryatia, and the Zabaikalsky Krai.

The ban will only apply during peak energy consumption periods in these areas. Specifically, the restricted period will run from Jan. 1 to March 15 in 2025 and from Nov. 15 to March 15 in subsequent years.

The Russian Cabinet of Ministers stated that the ban prohibits digital currency mining and participation in mining pools in designated areas. Officials highlighted that Russia’s energy regulator might adjust this list to address evolving energy demands.

Energy infrastructure challenges

The ban is most likely a response to local electricity shortages and the growing burden of unpaid energy bills. The government aims to curb power imbalances while efficiently allocating electricity resources.

Deputy Minister of Energy Yevgeny Grabchak previously noted that areas in the far east and southern regions, as well as southwestern Siberia, lack the infrastructure to support large-scale mining. These energy challenges are expected to persist until 2030.

This limit on mining follows the recent implementation of Russia’s crypto tax framework, signaling a broader effort to regulate the industry. The new law enforces compliance with tax policies for cryptocurrency-related activities, underlining the government’s tightening grip on the sector.

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