Russian Regions to Ban Crypto Mining as Crackdown Continues

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated:

October 30, 2024 19:30 EDT

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Russia’s Energy Ministry says it will ban crypto mining in “some” regions, with crackdowns on “illegal” miners intensifying in Siberia.

Yevgeny Grabchak, the Deputy Minister of Energy, said that “state-level” bans were in the pipelines and would likely last “until 2030.”

“[Crypto] mining will soon be banned at the state level in some regions.”

Yevgeny Grabchak, Russian Deputy Minister of Energy

Russian Regions to ‘Ban Crypto Mining’

Per the news agency TASS, Grabchak explained that the ban was “due to a shortage of electricity” in these regions.

While the Deputy Minister did not say which regions the government has in mind, he suggested that the bans would focus on traditional mining hotspots.

“For example, we already have places that are in energy deficits, such as the Far East, Southwest Siberia, and the South. We cannot give large capacities of power to anyone in the long term there until 2030.”

Yevgeny Grabchak, Russian Deputy Minister of Energy

Grabchak was speaking days ahead of the promulgation of a new crypto mining law. The act, Russia’s second mining-focused law, gives regions the power to issue temporary bans on miners.

Earlier this year, President Vladimir Putin gave his blessing to the crypto mining industry. But he also called for regions to have the power to force miners to turn off their rigs, claiming that some areas were experiencing power shortages.

However, the ministry’s new proposal will grant the central government – not regional governors – the right to issue local mining bans.

The news comes just days after Chita Online reported that the Governor of Irkutsk has asked the Russian Prime Minister Mikhail Mishustin to “completely ban” crypto mining in the Irkutsk Oblast, the Republic of Buryatia, and Transbaikalia.

Crackdown Continues

In the…