Russia to Fully Ban Crypto Mining in 10 Regions Starting January 1, 2025

From January 1, 2025, Russia will impose a comprehensive six-year ban on cryptocurrency mining in 10 regions, including Dagestan, the Republic of Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Luhansk Peoples Republics, as well as Zaporizhzhia and Kherson regions. The ban will last until March 15, 2031. Additionally, Russian lawmakers have approved seasonal restrictions on mining in key crypto-mining areas to prevent power outages. These measures align with the Russian cryptocurrency mining laws signed by the president in August and October 2024.

Russia Lifted Bitcoin Mining Ban on November 1

Russias Bitcoin mining ban, originally imposed in early 2022, primarily targeted large-scale Bitcoin mining operations within the country, especially in regions with low electricity costs. The ban was initially aimed at curbing excessive electricity consumption and preventing grid overload, particularly in economically weaker or power-scarce areas.

The ban was lifted on November 1, 2024, following an agreement reached at the BRICS Business Forum in mid-October in Moscow. Russia‘s sovereign wealth fund partnered with data center operator BitRiver to develop Bitcoin mining and AI computing facilities in BRICS nations. These regions often have underdeveloped IT infrastructure but an abundance of unused power resources. By engaging in Bitcoin mining, Russia can efficiently utilize these surplus energy reserves, helping modernize infrastructure in these countries while also boosting Russia’s economic returns.