MOSCOW – Russia has implemented a cryptocurrency mining ban in several Siberian regions to prevent potential power shortages during the winter months, a government commission announced on Tuesday.
Key Details of the Ban
The prohibition will be enforced in three regions near Lake Baikal, which have been attractive for cryptocurrency miners due to their low-cost electricity, primarily generated by large hydropower plants. The ban comes as part of efforts to manage the country’s energy resources during the challenging winter period.
Energy Consumption and Impact
According to official estimates, cryptocurrency mining in Russia currently consumes approximately 16 billion kilowatt-hours annually, representing about 1.5% of the country’s total electricity consumption. This significant energy use has created notable challenges, particularly in regions with harsh climates.
Additional Restrictions in Annexed Ukrainian Territories
The government has also restricted cryptocurrency mining in annexed areas of Ukraine, where much of the energy infrastructure has been destroyed since the Russian invasion in 2022. These areas have been experiencing persistent power shortages.
Russia’s Cryptocurrency Mining Landscape
Russia remains one of the global leaders in cryptocurrency mining, alongside the United States, China, Kazakhstan, and Canada. Earlier this year, the country enacted a new law regulating crypto-mining activities and introduced taxation measures, with expectations of collecting up to 200 billion roubles (approximately $2 billion) annually from miners.
Currency Note
Exchange rate: 1 USD = 100.5705 roubles
Source: Reuters
