Russia bans cryptocurrency mining in the Caucasus and occupied Ukraine

The Russian government has approved a list of regions and territories where cryptocurrency mining will be prohibited, TASS reported on December 24, citing a government decree.

The ban, which will take effect on January 1, 2025, and remain in place until March 15, 2031, applies to Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya, as well as occupied Ukrainian territories: the Donetsk and Luhansk “people’s republics,” and the Zaporizhzhia and Kherson regions.

Mining will also be prohibited during peak energy consumption periods in parts of the Irkutsk region, Buryatia, and the Zabaykalsky Krai. Government officials emphasized that the list of restricted regions is not final and may be revised.

“The purpose of these restrictions is to maintain a balance of energy consumption while accommodating industrial needs,” TASS reported, citing the government.

In October, President Vladimir Putin signed a law regulating the circulation of digital currency, granting the government the authority to impose mining bans.

Putin warned in July that cryptocurrency mining could lead to power shortages in some regions, noting that uncontrolled energy consumption for mining has already strained power supplies in the Irkutsk region, Buryatia, and the Zabaykalsky Krai.