The government will impose restrictions on the digital currency industry in areas with power shortages
The Russian government has approved a list of regions where crypto mining will be limited or completely banned starting from January 1, 2025 until March 15, 2031, TASS reported on Tuesday, citing a government document.
The ban will be imposed in ten regions facing electricity shortages, which include the southern republics of Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya, as well as Russia’s new regions – the Donetsk and Lugansk people’s republics, and Zaporozhye and Kherson regions.
Temporary mining restrictions will apply at peak energy consumption periods in three other regions – Irkutsk, Buryatia, and Transbaikal – the document said.
The list of regions subject to limitations could be expanded depending on demand from Russia’s power industry, sources at the Cabinet of Ministers told TASS. The government has attributed the measures to the need to balance energy usage while prioritizing industrial demands.
The move is part of a broader effort to manage energy resources efficiently and address power shortages, while accommodating industrial requirements.
Commenting on the initiative last month, Russian Deputy Prime Minister Aleksandr Novak, whose portfolio includes energy, said that crypto mining could only be useful in areas with available extra power capacity.
Mining has a “positive effect on the evenness of power load and leads to a specific reduction in costs,” Novak explained. However, it has a downside when it “eats up” all available capacity, impeding the connection of new customers to the grid, he added.
The decision follows Russia’s move to legalize cryptocurrency mining. In October, Moscow adopted a law outlining mining activity rules for digital currency, including restrictions on entities or individuals engaged in the power industry.
The framework also requires miners to register with the Federal Tax Service, providing detailed information about their assets.
The legislation introduced concepts such as digital currency mining, mining pools, and mining infrastructure operators, and defined the rights and liabilities of participants in the crypto mining market.
Russian President Vladimir Putin raised the issue of regulating cryptocurrencies and digital assets earlier this year, calling it a promising economic area and urging the creation of conditions for the circulation of digital assets, both domestically and with foreign partners.
Full text: Read More Topics: Credits: RT Business News
