Russia Cracks Down on Energy-Intensive Crypto Mining, Enforces Six-Year Ban Across Ten Regions to Address Power Consumption Challenges
Energy-Intensive Industry Faces Six-Year Restriction
Russia has announced a six-year ban on cryptocurrency mining across ten regions, citing high energy consumption as the primary reason. The ban, effective from January 1, 2024, to March 15, 2031, was reported by state-owned news agency Tass.
Crypto mining, known for its significant power demands, already accounts for nearly 2.5% of global energy use. The Russian Council of Ministers stated that additional restrictions might be imposed during peak energy periods, while temporary relaxations could occur if energy demand decreases.
Russia’s Evolving Relationship with Crypto
Cryptocurrency mining has been fully legal in Russia since November 1, 2023, with miners required to register with the Ministry of Digital Development. Energy consumption is closely monitored, ensuring adherence to government limits. However, Russia has prohibited the use of cryptocurrencies as legal tender since 2022, although cross-border payments remain allowed—a move widely interpreted as a strategy to bypass sanctions linked to the Ukraine conflict.
Global Trend of Crypto Mining Crackdowns
Russia isn’t alone in targeting crypto mining for its energy impact. Kosovo banned the practice in 2022 during an energy crisis, while Angola criminalized mining entirely in April 2024. European countries like Iceland and Norway have also tightened regulations to address energy shortages caused by the industry.
As governments worldwide grapple with energy challenges, the future of cryptocurrency mining remains uncertain, with increasing scrutiny on its environmental impact.
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