Moscow, May 14, 2025 — The Ministry of Energy of the Russian Federation has supported the initiative to impose a full ban on cryptocurrency mining in the Republic of Buryatia. The decision is due to the electricity shortage in the region and the desire to ensure the stability of the energy system. This was reported by several sources, including the press service of the Zabaikalsky Krai Ministry of Housing and Communal Services and statements by Deputy Minister of Energy Yevgeny Grabchak.
The Republic of Buryatia, along with the Irkutsk region and Zabaikalsky Krai, is part of the unified energy system of Siberia, which experiences chronic deficits in power capacity. Cryptocurrency mining, which requires significant amounts of electricity, exacerbates the strain on networks, especially during peak consumption periods. Previously, seasonal restrictions on mining were introduced in Buryatia from November 15 to March 15, but regional authorities and the Russian Ministry of Energy concluded that temporary measures are insufficient.
Deputy Minister of Energy Yevgeny Grabchak noted in the podcast "What Will Happen to Mining in Russia?" that a full ban in Buryatia and Transbaikalia will free up capacity for other consumers and reduce the risk of emergency outages. According to regional authorities, excessive energy consumption by miners poses a threat to the reliability of energy supply to the population and businesses.
The initiative has elicited mixed reactions in the crypto community. Russia, which ranks second in the world in terms of computing power for mining, risks losing part of its position in the global market. Experts point out that a full ban may push legitimate miners into the "gray" zone, complicating oversight of their activities and tax contributions.
"A ban on mining in Buryatia could lead to the redistribution of power to other regions or even abroad, for example, to Kazakhstan or countries with more lenient regulations," remarked crypto market analyst Sergey Ivanov. "However, it also signals to investors that Russia is striving for tighter regulation of the industry."
Authorities in Buryatia emphasize that the mining ban is accompanied by measures to modernize the energy system. The region is implementing projects to increase the capacity of the Gusinoozyorskaya GRES, modernize CHPP-2, and build new solar power plants. These steps are aimed at eliminating the energy deficit and improving the reliability of the energy supply.
If implemented, a full ban on mining in Buryatia will continue the policy of restricting crypto mining in Russia's energy-deficient regions. Since January 1, 2025, mining has already been fully banned in ten regions, including the republics of the North Caucasus and new regions, and seasonal restrictions are in place in Buryatia, the Irkutsk region, and Zabaikalsky Krai. The expansion of the ban may be linked to the preparation for the liberalization of the electricity market, which will be completed by 2031.
At the same time, the legalization of mining, initiated in Russia in November 2024, provides miners the opportunity to operate within a legal framework but with strict limitations. Individuals can mine cryptocurrency within an energy consumption limit (6000 kWh per month), and companies must register in the Federal Tax Service registry.
The initiative for a full ban on mining in Buryatia reflects the authorities' desire to balance the interests of the energy system with those of consumers. However, it also highlights the challenges facing the crypto industry in the context of tightened regulation. In the coming months, it will become clear how the ban will affect the market and whether the region will be able to solve the energy deficit problem.