Russia's Ministry of Energy has introduced year-round restrictions on cryptocurrency mining in Moscow and several other regions. The measure is aimed at reducing the load on the energy system and preventing capacity shortages.
Cryptocurrency mining is banned in Moscow, the Moscow region, and in certain areas of the Kursk region. The ban is in effect until December 31, 2032, and is enshrined in Government Decree No. 936, which was signed on July 25 and published on July 31. The document also prohibits participation in mining pools.
According to the Hashrate Index by Luxor, in the first quarter Russia accounted for 175,175 exahashes per second, representing 16.4% of the global Bitcoin network's computing power. The country ranks second after the United States. However, it is unknown what share of these capacities was located in the regions subject to the new restrictions.
The energy consumption situation is of particular concern to the authorities. As reported by Interfax after the decree was signed, the current energy consumption for mining in the Moscow energy system is about 11 GW. By 2032, the capacity of data centers in the region could reach 3.6 GW, which would constitute 17% of peak demand.
Mining is directly related to circumventing Western sanctions. In December 2024, Finance Minister Anton Siluanov said that Russian companies use Bitcoin mined domestically for international settlements. This became possible after legislative changes aimed at countering restrictions.
In July, parliament passed a law that maintained the ban on domestic cryptocurrency payments but left exceptions for foreign trade settlements and operations with mined cryptocurrency. Thus, the mechanism for international settlements via cryptocurrency remained available in conditions where sanctions restrict traditional payment channels.
Another important factor is US sanctions. In 2022, the US Treasury imposed restrictions on BitRiver and 10 of its subsidiaries. The justification stated that Russian mining companies help the country monetize energy resources and mitigate the effects of sanctions.
Regulation of mining in Russia is developing gradually. In 2024, registered cryptocurrency mining was legalized, but soon after, a ban on mining was introduced in 10 regions until March 2031. The Ministry of Energy justified this by high electricity demand. Later, restrictions were extended to southern Irkutsk, most of Buryatia, and the Trans-Baikal Territory. Now, the authorities have introduced year-round restrictions in Moscow, the Moscow region, and the Kursk region.
The authorities believe such measures are necessary to reduce the risk of energy capacity shortages, as energy-intensive mining installations place significant strain on regional grids. At the same time, mining remains a tool for international settlements under sanctions, creating a certain contradiction between energy policy and the country's economic interests.