Russia to Restrict Cryptocurrency Mining Amid Electricity Shortages
On October 30, Russia's Deputy Energy Minister, Evgeny Grabchak, announced plans to restrict cryptocurrency mining in regions suffering from electricity shortages.
He emphasized that Bitcoin mining would face a state-level ban in certain areas due to critical energy deficits.
During a tech forum hosted by RBC, Grabchak noted that regions such as the far east, southwestern Siberia, and the south are grappling with significant energy shortages, which are unlikely to improve until at least 2030.
This announcement follows a recent law signed by President Vladimir Putin that regulates cryptocurrency circulation, effective November 1.
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The legislation grants the government the power to impose mining restrictions in specific areas and outlines the framework for such measures. It also includes prohibitions on advertising crypto and related services.
In a related move, Yandex, Russia’s leading search engine, updated its advertising policies in August 2024 to ban ads for all crypto-related services, including exchanges, blockchain services, and initial coin offerings.
Additionally, there are plans for the Finance Ministry to explore a tax on electricity consumption by crypto miners, although no final decisions have been reached yet.