Expanding Cryptocurrency Mining Ban in Russia
Federal authorities in Russia are moving forward with plans to implement a full ban on cryptocurrency mining, a measure that is already in place in about a dozen regions. Recent reports indicate that miners in two additional areas, specifically southern Buryatia and Transbaikal, could soon find their operations completely outlawed.
The Shift Toward Permanent Bans
Currently, miners in Buryatia and Transbaikal are under temporary restrictions, which were notably activated for the winter months—coinciding with increased electricity demands. However, documents revealed by the Russian newspaper Kommersant have indicated that officials intend to cement these seasonal measures into a year-round ban starting next year. As it stands, the government had briefly halted mining activities in these regions from November 15, 2025, to March 2026.
The southern part of Transbaikal and Buryatia is tied into the same segment of the Unified Energy System of Siberia, which has been strained by the burgeoning energy demands of cryptocurrency miners. The mining capital of Russia, Irkutsk, has already seen such restrictions implemented, with local authorities claiming that halting operations freed up approximately 320 megawatts of generation capacity.
Government Observations
The call for a more stringent ban appears to come from the Ministry of Energy. In early November, a representative stated that they were continuously monitoring the speculative and energy usage climates across the regions, hinting at potential legislative actions if the situation continues to escalate. This echoed prior declarations made in September, wherein authorities asserted no immediate need for expanded bans.
The Broader Context of Russia’s Crypto Mining Policy
In the latter half of 2024, Russia legalized cryptocurrency mining, viewing it as a way to leverage the nation’s rich energy resources and favorable climatic conditions. This move made Russia one of the first countries to embrace crypto mining as a regulated industrial activity, allowing participants to officially register for tax purposes.
Despite this progressive step, the government’s attitude toward mining has remained somewhat contradictory. While officials recognize the potential of the industry, they have also responded swiftly to the energy crises attributed to rampant, often illegal, mining activities. Regions facing energy shortages due to this influx of mining operations have sought to impose seasonal bans, which now extend to more than 10 Russian territories.
The Economic Implications
President Putin has characterized the need for mining restrictions as a response to growing power deficits. At the same time, some of his aides argue that mining could serve as a new “hidden export” for Russia, offering a counterbalance to trade sanctions. Maxim Oreshkin, Deputy Chief of Staff of the Presidential Executive Office, has suggested that mining could bolster Russia’s position in the global economy, emphasizing its potential contributions to the country’s balance of payments.
Regulatory Efforts and Challenges
Efforts are underway to draw more miners into the formal economy. Currently, only about 30% of these businesses are registered with the Federal Tax Service, leaving a significant portion operating in the shadows. The government has intensified crackdowns on illegal mining operations, particularly those running on stolen electricity. Law enforcement agencies have collaborated with local power utilities to dismantle over 100 such facilities in a single region this year.
Authorities have also employed increasingly sophisticated methods to detect and eliminate unlicensed mining activities, indicating a commitment to normalizing the industry while tackling criminal exploitation of energy resources.
Conclusion
The landscape of cryptocurrency mining in Russia is rapidly evolving, shaped by federal regulations aimed at addressing energy shortages and balancing economic interests. While the ban on mining operations in Buryatia and Transbaikal is just the latest development, it underscores a broader trend in how the Russian government is managing the burgeoning sector. With significant energy implications and economic considerations at play, the future of cryptocurrency mining in Russia remains complex and uncertain.
