The Russian Energy Ministry has officially proposed limiting crypto mining activities in certain special regions affected by energy shortages. The authorities have the right to impose such a ban following the enactment of the recent national cryptocurrency law this month.
Russian Energy Ministry Proposal Would Limit Crypto Mining Activities in Special Regions
While authorities have declared the crypto mining industry relevant for Russia, their actions show that developing other essential activities has priority over these. According to TASS, the official Russian news agency, the Russian Energy Ministry has introduced a proposal that would affect the feasibility of these operations in certain regions.
An unidentified source stated that the proposal, which would start applying these restrictions this upcoming December, was official. “Indeed, there is a proposal from the Energy Ministry, we will consider it at a meeting of the governmental commission on November 18,” the source stressed.
The Energy Ministry remarked that the possible upcoming restrictions were justified due to forecasted energy shortage periods in some regions. The Ministry explained it was prudent to “ban the mining of digital currency in areas facing critical regulatory and fiscal parameters and regions with subsidized electricity prices during forecasted shortages.”
The Irkutsk Region, Buryatia, the Trans-Baikal region, Karachay-Circassian region, the Kabardino-Balkaria region, the North Ossetia-Alania region, Ingushetia, Chechnya, Dagestan, the Kherson region, the Zaporizhzhia region, the Donetsk People’s Republic (DPR) and the Lugansk People’s Republic (LPR) are among the locations that will be likely affected by this measure.
These would hit mining operators in these regions from December 1, 2024, to March 15, 2025. Then, mining would be banned in these locations from November to March each year at least until 2031.
The decision to restrict crypto mining activities at a state level is no surprise. Last month, Russian Deputy Energy Minister Yevgeny Grabchak stated these restrictions would have to be in place due to the power shortages in regions like Siberia. At the time, he noted the Russian state would not be able to guarantee “large capacities to anyone in the long term until 2030.”