Russia has announced a six-year ban on Bitcoin mining in 10 regions, starting from January 1, 2025. This decision has been taken to address the ongoing energy shortages in these areas. The affected regions include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, as well as the Zaporizhzhia and Kherson regions.
This ban is part of a broader effort to manage energy resources more effectively and ensure a stable power supply for Russian citizens. The surge in cryptocurrency mining activities has put significant pressure on Russia’s power grid, leading to this drastic measure. The Russian government has also introduced seasonal restrictions in key mining regions like Irkutsk, Buryatia, and Zabaikalsky to prevent energy blackouts during peak consumption periods.
Bitcoin mining is known for its high energy consumption, currently around 160 terawatt-hours of electricity annually, which is more than the entire country of Argentina. This high energy demand has led to increased operational costs for miners and has put additional strain on Russia’s energy infrastructure.
Sources:
https://cointelegraph.com/news/russia-crypto-mining-ban-2025-2031
https://www.ccn.com/news/crypto/russia-regions-six-year-crypto-mining-ban/
https://www.statista.com/statistics/881472/worldwide-bitcoin-energy-consumption/