The Russian government has enacted a resolution imposing a ban on digital currency mining across ten regions starting January 1, 2025. This restriction, effective until March 15, 2031, aims to regulate energy consumption and safeguard industrial energy requirements.

According to a report by TASS on December 24, the ban applies to Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People's Republics, as well as the Zaporizhia and Kherson regions.

Additionally, some parts of the Irkutsk Region, Buryatia, and Zabaikalsky Krai will face temporary mining restrictions during peak energy consumption periods. These peak periods are defined as January 1 to March 15 for 2025, and from November 15 to March 15 for subsequent years.

The Cabinet of Ministers clarified that this list could be revised in the future, depending on recommendations from the government commission on electric power development. The primary objective of these restrictions is to ensure energy balance, particularly during periods of heightened industrial demand.

Legal Framework for Mining

Mining activities in Russia have been legally recognized since November 2024. However, miners must comply with strict reporting requirements. Individual entrepreneurs and legal entities must register with the Federal Tax Service (FTS) and disclose details of their crypto wallets and obtained assets. For individuals, mining is permitted within a limit of 6,000 kWh per month.

The government’s decision reflects its intent to balance the burgeoning crypto industry with the nation's energy infrastructure needs. Further adjustments to the restrictions remain a possibility as energy consumption dynamics evolve.