Russia Considers Expanding Crypto Mining Bans to Three Regions

The Russian Energy Ministry is considering the expansion of crypto mining restrictions to three additional regions: the northern part of Karelia, the Penza Oblast, and parts of Khakassia. This consideration is driven by the increasing pressure on local electricity grids due to the energy-intensive nature of crypto mining operations. A government commission is expected to make a decision on these potential bans in May.

This move follows previous restrictions imposed by Moscow. On January 1, 2025, the city banned mining during winter months in 10 regions, including parts of Southern Siberia and the North Caucasus. Additionally, on April 7, 2025, Moscow implemented its first year-round ban on crypto mining in the southern part of the Irkutsk Oblast, a prominent Bitcoin mining hub. In the Buryatia and Transbaikalia regions, miners have been asked to turn off their rigs during peak energy consumption periods.

Andrey Maksimov, the head of the ministry’s Department for the Development of the Electric Power Industry, acknowledged the possibility of expanding the ban. He noted that several regions have expressed interest in introducing restrictions, although he did not specify whether these regions were seeking year-round or seasonal bans. Maksimov left the door open for other regulatory measures, suggesting that the ministry is still evaluating the best course of action.

Industrial miners in Karelia have proposed alternative measures to bans, such as imposing tariffs and increasing taxes. Sergei Maksakov, the chairman of the economics, taxes, and finances committee at the Karelia Chamber of Commerce and Industry, argued that differentiated electricity tariffs could be a more effective way to limit mining activities. He also suggested that miners could be asked to give up some of their capacities. Maksakov emphasized the importance of consulting with industrial miners before implementing any changes, stating that regulatory measures should ensure economic stability while addressing the concerns of both miners and the broader community.