Russia Considers Banning Crypto Mining in Three More Regions

The Russian Energy Ministry is considering banning cryptocurrency mining in three additional regions due to the increasing strain on local electricity grids. The regions under consideration for the ban include the northern part of Karelia, the Penza Oblast, and part of Khakassia. This potential expansion of mining restrictions comes after Moscow implemented a winter ban on mining in 10 regions and a year-round ban in the southern part of the Irkutsk Oblast, which is Russia’s primary Bitcoin mining hub.

A spokesperson for Deputy Prime Minister Alexander Novak confirmed that a government commission is likely to make a decision on new mining bans in May. The ministry’s Department for the Development of the Electric Power Industry, led by Andrey Maksimov, has indicated that an “expansion” of the ban is “possible.” However, Maksimov did not specify whether the regions had requested year-round or seasonal bans, leaving the door open for other forms of restrictions.

Industrial miners in Karelia have proposed alternative measures to bans, suggesting that imposing tariffs and increasing taxes could be more effective. Sergei Maksakov, the chairman of the economics, taxes, and finances committee at the Karelia Chamber of Commerce and Industry, advocated for differentiated electricity tariffs and partial capacity reductions for miners. He emphasized the importance of consulting with businesses before implementing legislative changes and ensuring that regulatory measures are economically sound.

This development highlights the ongoing debate within Russia about how to manage the energy demands of cryptocurrency mining. While some regions are pushing for bans to alleviate pressure on electricity grids, others are exploring more nuanced approaches that could balance the needs of the mining industry with the broader energy requirements of the population. The decision by the government commission in May will be crucial in determining the future of crypto mining in these regions and could set a precedent for how Russia manages this growing sector.