Several Russian Areas Prohibit Crypto Mining - TASS
The government plans to implement restrictions on the digital currency sector in regions experiencing power shortages. Read Full Article at RT.com.
TroibNews 
The Russian government has approved restrictions on the digital currency industry in regions experiencing power shortages, with the measures set to take effect from January 1, 2025, until March 15, 2031, according to a report by TASS citing a government document.
The ban will apply to ten regions that are facing electricity shortages. These regions include the southern republics of Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya, as well as Russia’s new territories: the Donetsk and Lugansk people's republics, and the Zaporozhye and Kherson regions.
Additionally, temporary mining restrictions will be in effect during peak energy consumption periods in three other regions: Irkutsk, Buryatia, and Transbaikal, as noted in the document.
Sources from the Cabinet of Ministers informed TASS that the list of regions subject to these restrictions could expand based on the demands of Russia’s power industry. The government justified these measures as necessary to balance energy consumption while prioritizing industrial needs.
This decision is part of a broader strategy aimed at efficient energy resource management and addressing power shortages while accommodating industrial requirements.
In discussing the initiative last month, Russian Deputy Prime Minister Aleksandr Novak, responsible for energy, remarked that crypto mining could be beneficial in areas where there is excess power capacity. Novak noted that mining has a "positive effect on the evenness of power load and leads to a specific reduction in costs." However, he pointed out its downside when it "eats up" all available capacity, which hinders the connection of new customers to the grid.
This decision comes on the heels of Russia's legalization of cryptocurrency mining. In October, Moscow implemented a law that sets out the rules for digital currency mining activities, including restrictions on entities or individuals associated with the power industry.
The new framework requires miners to register with the Federal Tax Service and provide detailed information about their assets. It also introduced concepts such as digital currency mining, mining pools, and mining infrastructure operators and defined the rights and responsibilities of participants in the crypto mining market.
Earlier this year, Russian President Vladimir Putin addressed the need for regulating cryptocurrencies and digital assets, describing it as a promising economic area and calling for the establishment of conditions conducive to the circulation of digital assets both domestically and internationally.
Ramin Sohrabi for TROIB News
The ban will apply to ten regions that are facing electricity shortages. These regions include the southern republics of Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya, as well as Russia’s new territories: the Donetsk and Lugansk people's republics, and the Zaporozhye and Kherson regions.
Additionally, temporary mining restrictions will be in effect during peak energy consumption periods in three other regions: Irkutsk, Buryatia, and Transbaikal, as noted in the document.
Sources from the Cabinet of Ministers informed TASS that the list of regions subject to these restrictions could expand based on the demands of Russia’s power industry. The government justified these measures as necessary to balance energy consumption while prioritizing industrial needs.
This decision is part of a broader strategy aimed at efficient energy resource management and addressing power shortages while accommodating industrial requirements.
In discussing the initiative last month, Russian Deputy Prime Minister Aleksandr Novak, responsible for energy, remarked that crypto mining could be beneficial in areas where there is excess power capacity. Novak noted that mining has a "positive effect on the evenness of power load and leads to a specific reduction in costs." However, he pointed out its downside when it "eats up" all available capacity, which hinders the connection of new customers to the grid.
This decision comes on the heels of Russia's legalization of cryptocurrency mining. In October, Moscow implemented a law that sets out the rules for digital currency mining activities, including restrictions on entities or individuals associated with the power industry.
The new framework requires miners to register with the Federal Tax Service and provide detailed information about their assets. It also introduced concepts such as digital currency mining, mining pools, and mining infrastructure operators and defined the rights and responsibilities of participants in the crypto mining market.
Earlier this year, Russian President Vladimir Putin addressed the need for regulating cryptocurrencies and digital assets, describing it as a promising economic area and calling for the establishment of conditions conducive to the circulation of digital assets both domestically and internationally.
Ramin Sohrabi for TROIB News
