Russia has implemented a comprehensive ban on cryptocurrency mining in Moscow and surrounding regions through December 31, 2032, with the restrictions taking effect today. The ban extends to the Moscow Region and eight districts in the Kursk region, covering both mining operations and participation in crypto mining pools. This decision represents a significant shift for Russia, which previously legalized registered crypto mining in 2024 before implementing bans in 10 other regions due to rising electricity demand. The ban also applies to the city of Kursk, marking a broader regional restriction beyond just Moscow and its immediate surroundings.
The Energy Ministry justified the year-round restriction to mitigate power-capacity shortages as energy-intensive mining facilities continue to strain regional grids. According to Interfax reports, mining currently consumes roughly 1 gigawatt in the Moscow power system, while the region's data-center capacity could reach 3.6 GW, representing 17% of peak demand by 2032. Russia's overall Bitcoin mining capacity accounted for an estimated 175 exahashes per second, or 16.4% of Bitcoin's global computing power, in the first quarter, placing it second behind the U.S.
The mining restrictions are linked to Russia's Western sanctions regime, with Russian companies previously using domestically mined bitcoin in international payments after legal changes designed to counter Western restrictions. As reported by Finance Minister Anton Siluanov in December 2024, legislation passed by parliament in July maintained Russia's ban on domestic crypto payments but preserved exceptions for foreign-trade settlements and transactions involving mined cryptocurrency. The U.S. Treasury sanctioned BitRiver and 10 subsidiaries in 2022, citing that Russian mining companies helped monetize energy resources and could offset sanctions impact.
Russia's approach to cryptocurrency mining has evolved significantly since 2024, when the country legalized registered mining before implementing bans in 10 regions through March 2031. Year-round restrictions were later extended to southern Irkutsk and most areas of Buryatia and Zabaykalsky Krai. The current Moscow ban represents the most significant restriction, affecting the capital city where much of Russia's mining infrastructure is concentrated, highlighting the government's commitment to balancing energy demands with cryptocurrency operations.
