A state commission in Russia has proposed a six-year ban on cryptocurrency mining in Moscow, the Moscow Oblast, and parts of the Kursk region, a move expected to take effect soon. The decisio
A state commission in Russia has proposed a six-year ban on cryptocurrency mining in Moscow, the Moscow Oblast, and parts of the Kursk region, a move expected to take effect soon. The decision seeks to manage energy consumption and protect the energy infrastructure in these economically vital areas.
Russian Deputy Energy Minister Evgeniy Grabchak stated that the proposed ban could remain in place until at least 2032. Sergey Voropanov, Moscow Oblast’s Energy Minister, emphasized that crypto mining does not benefit the local economy, referencing positive outcomes in regions where bans have already been implemented. Both Moscow Governor Andrey Vorobyov and city Mayor Sergey Sobyanin have expressed their support for stricter mining regulations.
According to Energy Ministry data, at least 65 data centers with a combined capacity of 734 megawatts are currently connected to the grid in Moscow and its surrounding territories. Kursk Governor Alexander Khinshtein highlighted the strain on the electricity supply caused by the ongoing war, recommending similar restrictions in eight districts and the city of Lgov. Local authorities claim that suspending mining in these regions would boost energy reserves and ensure more reliable electricity for households and industry.
The Kommersant daily has reported that the government is discussing plans to extend the mining ban to all 19 administrative regions within Moscow’s electricity distribution zone. Should this proceed, most crypto mining activity would be curtailed across Russia’s Central Federal District, one of the country’s economic core zones.
Cryptocurrency mining was legalized in Russia in 2024, with plentiful energy resources and a cold climate once seen as competitive advantages. However, in regions offering cheap electricity, mining facilities mushroomed, leading to local energy deficits. Last year, authorities suspended digital currency production in 13 regions until spring 2031, including Irkutsk and Buryatia in Siberia, several North Caucasus republics, and four oblasts annexed from Ukraine.
Mini glossary: The Central Federal District is Russia’s most economically advanced administrative region, home to about 40 million people, with Moscow at its heart.
RegionBan StartBan EndTotal Facilities (Estimated)Moscow and surroundings2024203265+13 regions (Siberia, North Caucasus, annexed zones)20232031UnknownRussia’s lower house of parliament, the State Duma, has given initial approval to a bill making unregistered mining a criminal offense. Those operating without oversight or using stolen electricity face not only fines but also possible imprisonment and mandatory labor. Organized illegal mining groups could be penalized with fines up to 2.5 million rubles (about $35,000) and up to five years in prison. The bill contains different penalties based on the scale of the offense and the damages caused.
The draft law approved in the State Duma states that property of those engaged in illegal crypto mining can be confiscated, and penalties may be reduced or lifted if damages are compensated.
Russia currently ranks among the top countries worldwide for Bitcoin mining. Both individual entrepreneurs and companies are allowed to operate legally, provided they register and pay taxes. Yet, out of an estimated 50,000 mining operations in Russia, only around 1,500 are officially registered.
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