The Russian government has imposed a six-year ban on crypto mining in ten regions, starting January 1, according to the state-owned news agency Tass. The ban, which extends until March 15, 2031, is driven by the high energy consumption associated with cryptocurrency mining.
The country’s Council of Ministers has indicated that further bans may be necessary in other regions during peak energy demand. Conversely, the ban could be temporarily lifted or adjusted in certain areas if a government commission reviews energy needs and decides it is warranted.
Cryptocurrency mining, notorious for its heavy power usage, has only been fully legal in Russia since November 1. Miners are required to register with the Ministry of Digital Development and adhere to monitored energy consumption limits.
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While Russia prohibited cryptocurrencies as legal tender in 2022, it permits cross-border payments, a move seen as an effort to circumvent sanctions following the Ukraine invasion.
This isn’t an isolated action. Kosovo banned crypto mining in 2022 to save electricity during an energy crisis, and Angola followed suit in April 2024, going as far as criminalizing the practice. European countries like Iceland and Norway have also started to strictly regulate the industry due to energy shortages.
“Crypto mining operations consume an exorbitant amount of power,” explained Tass, adding that the industry already accounts for nearly 2.5% of US energy use.
The recent ban by Russia highlights the global struggle to balance the benefits of digital currencies with the pressing need for sustainable energy consumption.
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