Ban on Cryptocurrency Mining in Russia Strengthens Energy Stability
On September 4, 2025, Russia's Energy Minister Sergey Tsivilev spoke at the Eastern Economic Forum about the positive results of the introduced restrictions on cryptocurrency mining. Legislative measures, which came into force in January 2025, aim to stabilize the national energy system and bring the mining sector under regulation.
Stabilizing the Electrical Grid
The partial ban on cryptocurrency mining, introduced in energy-deficient regions such as the southern part of the Irkutsk region, Buryatia, Transbaikalia, and the North Caucasus regions, showed significant results. According to Tsivilev, the restrictions, especially during the autumn-winter period, allowed saving over 300 MW of capacity during peak load periods. This helped prevent potential power outages and reduced the strain on the energy infrastructure, which was previously under pressure due to high energy consumption from mining operations.
Legalization and Taxation of Mining
Legislative changes adopted in November 2024 removed cryptocurrency mining from the 'gray zone', Tsivilev noted. Companies engaged in digital asset extraction are now required to register with the Federal Tax Service and report on their activities, paying taxes into the state budget. This allowed formalizing the industry, ensuring its compliance with national standards and transparency for fiscal authorities.
Regional Restrictions and Future Plans
The ban on mining is not nationwide. In ten regions, including Dagestan, Ingushetia, Chechnya, and others, cryptocurrency mining is completely banned until March 2031 due to chronic electricity shortages. In regions such as the Irkutsk region, Buryatia, and Transbaikalia, seasonal restrictions are introduced during peak energy consumption periods (from January to March 2025 and from November to March in subsequent years). The government retains the ability to adjust the list of regions with restrictions depending on energy needs, considering, for example, the inclusion of Khakassia.
Balancing Regulation and Industry Development
Tsivilev emphasized that the restrictions do not hinder the development of the energy sector and its investment attractiveness. The construction of new data centers (DPCs) is not prohibited, and work on modernizing the energy infrastructure will continue. However, control over compliance with legislation will be strengthened: in 2026, by order of the Prosecutor General's Office, a check on miners' compliance with regulatory requirements will be conducted.
Challenges and Criticism
Despite the successes, the restrictions have raised concerns. Some experts believe that the bans may push small miners into illegal activities, complicating efforts to legalize the industry. Energy companies in Siberia, according to sources, lost about $10 million in revenue due to reduced mining activity, highlighting the economic trade-offs.
Conclusion
The targeted ban on cryptocurrency mining in Russia demonstrates the authorities' desire to balance energy stability and the regulation of a developing industry. Preserving capacity and formalizing mining strengthen the power system and the budget. However, for long-term success, constant monitoring and possible adjustment of measures will be needed.