Russia Enacts Six-Year Crypto Mining Ban in Ten Regions Starting January 1
The Russian government has imposed a six-year ban on crypto mining in 10 regions due to high power consumption, as reported by Tass.
This ban, which includes participation in mining pools and temporary restrictions in other areas during peak demand, will take effect on January 1, 2024, and end on March 15, 2031. The decision was made by the Council of Ministers.
In July, Russia legalized crypto mining, with the law becoming effective last month. While cryptocurrencies are banned as legal tender for domestic payments, cross-border crypto payments are permitted in an effort to evade sanctions following the invasion of Ukraine.
The regions affected by the ban include Dagestan, North Ossetia, and Chechnya, with the possibility of adjustments based on a government commission that will assess changes in energy demand.
The ban also considers inter-regional subsidies on electricity, which make power usage cheaper in certain areas.