Russia Tightens Rules for Crypto Miners

Russia will ban cryptocurrency mining in Moscow, the Moscow Region and eight municipalities in the Kursk Region. The restrictions will take effect on August 15 and remain in force until December 31, 2031. They will apply to companies, individuals and mining pool participants.

The decision was prompted by rising electricity consumption. In April, the Moscow Region’s Energy Ministry requested the ban after cryptocurrency mining operations began consuming more than 1 GW of power. According to the authorities, this placed excessive strain on the local grid and worsened energy shortages without providing any clear economic benefits to the region.

This is the latest in a series of similar measures introduced by the Russian government. Since January 1, 2025, cryptocurrency mining has been prohibited in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya and parts of the Irkutsk Region in southern Siberia. These regions either face electricity shortages or benefit from subsidised energy prices.

The ban will affect both large-scale mining operations and individual miners. It may also have consequences for people based outside the restricted areas if they belong to mining pools that include participants from regions where mining is prohibited.

Russia permits cryptocurrency mining under certain conditions, but the growing number of regional restrictions shows that the stability of the country’s power grid takes priority. The loss of the Moscow Region will be particularly significant for the industry, as the area is an important centre for data centres and industrial activity and has traditionally attracted miners with its relatively low energy prices.