Russia has imposed a permanent ban on Bitcoin mining in Moscow to alleviate energy grid pressure, lasting until 2032.
The Russian government has instituted a permanent ban on cryptocurrency mining in Moscow and parts of Kursk, effective until the end of 2032, as outlined in decree No. 936 from the Energy Ministry. This move is aimed at addressing the strain on the regional power infrastructure caused by the high energy demands of mining operations.
Energy shortages in the affected areas have been a growing concern, largely driven by the rising energy consumption from cryptocurrency mining facilities. The decree was signed on July 25 and released to the public on July 31, and it also prohibits involvement in mining pools.
Data from Luxor’s Hashrate Index indicates that Russia accounted for around 175 exahashes per second of Bitcoin’s total network power in the first quarter, making up 16.4% of the global share, and positioning the country second only to the United States in mining capacity.
The Energy Ministry has highlighted that the current mining activities in Moscow alone use about 1 gigawatt of power. Projections suggest that the demand could jump to 3.6 gigawatts by 2032, which could reach 17% of the peak energy demand in the region.
Additionally, Russian mining companies are reportedly using locally mined Bitcoin for international transactions, a strategy supported by recent legal changes to offset the effects of international sanctions. The parliament has upheld a ban on local cryptocurrency payments but has made exceptions for transactions involving mined Bitcoin.
Western sanctions, such as those imposed by the U.S. Treasury on BitRiver and its subsidiaries in 2022, have targeted Russian mining operations due to concerns that they help the country monetize its energy resources, potentially undercutting the sanctions' effectiveness.
Since legalizing registered crypto mining in 2024, Russia has implemented multiple prohibitions in various regions, with this latest ban being part of ongoing efforts to regulate energy consumption by the mining sector.
