Russian federal authorities plan to expand a total ban on cryptocurrency mining that already covers about a dozen territories.
Miners in two other regions just recently shut down their crypto farms over the winter, but minting of digital coins could soon be completely banned.
Russian government to halt mining activities in two Siberian territories
Moscow's executive authority plans to impose a year-round ban on cryptocurrency mining in southern Buryatia and Zabaikal, but for now the restrictions on activity are temporary.
This plan was exposed by the Russian media. Kommersant on Tuesday cited the draft protocol of the meeting of the Government Committee on the Development of the Electric Power Industry.
Permanent measures are expected to be introduced next year, according to documents obtained by Russia's leading business newspaper.
Last month, Russian authorities suspended mining in Buryatia and the Zabaikalsky region during the winter season, when electricity consumption peaks.
The seasonal suspension was scheduled to last from November 15, 2025 until March 2026, Cryptopolitan reported.
The Russian paper pointed out that the southern regions of Zabaikal, Buryatia and Irkutsk oblasts are all supplied by the same part of the Siberian unified energy system.
Cryptocurrency mining in southern Irkutsk, also known as Russia's mining capital, was banned earlier this year.
Later, local government officials claimed that the measure freed up about 320 MW of power generation capacity.
The first signs that the total ban would spread to the two neighboring regions emerged in early November, even though the Department of Energy declared in September that it saw no reason to expand the ban.
At a meeting in the Federation Council, the upper house of Russia's parliament, a representative of the ministry said:
“We are monitoring the situation on the ground. If necessary, we will react quickly and impose a year-long ban on mining, similar to the Irkutsk region.”
Russia maintains ambiguous policy regarding crypto mining
The Russian Federation legalized cryptocurrency mining in late 2024, with the aim of benefiting from competitive advantages in this market: abundant energy resources and suitable climatic conditions.
In fact, digital currency minting became the country's first comprehensively regulated crypto-related business recognized as a legal industrial activity. Those who wish to participate in this only need to register for tax purposes.
However, low and often subsidized electricity prices in certain regions of the country attract miners, both licensed and illegal, leading to a high concentration of mining companies, leading to energy shortages and overloaded power grids.
As a result, local and federal authorities initially restricted mining during the coldest months of the year, and in many cases ended up banning mining altogether for the next six years until spring 2031.
This radical measure currently targets more than 10 regions of Russia, from Siberia to the North Caucasus and even the occupied territories of eastern Ukraine.
The somewhat ambivalent attitude of Moscow's establishment towards cryptocurrency mining is underlined by statements from various Russian officials.
In July, President Putin justified the restrictions by citing growing power shortages and accused Bitcoin miners of using up all surplus energy in some regions.
But in December, one of his top aides, Deputy Chief of Staff Maxim Oreshkin, almost praised mining as Russia's new “hidden export” amid sanctions restricting foreign trade. He called for it to be included in the country's balance of payments.
Meanwhile, only about 30% of mining operations are currently registered with the Federal Tax Service, the FNS, and the Russian government is trying to extract more people involved in the sector from the shadow economy.
The crackdown on illegal cryptocurrency farms that run on stolen electricity has also been stepped up. Since the beginning of this year, more than 100 such facilities have been demolished in just one of the areas where the problem has worsened.
Local power company employees now regularly carry out joint raids with the participation of law enforcement officials, and the methods employed by both sides in this fight are becoming increasingly sophisticated.
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