Affected areas in Siberia include the entire Irkutsk region, parts of the Republic of Buryatia, Zabaikalsky Krai, and several other regions such as Dagestan and Chechnya.

The new mining regulations come after President Vladimir Putin signed legislation in November 2024 aimed at regulating crypto mining and establishing infrastructure for cross-border cryptocurrency payments.

Recent changes to Russia's crypto taxation policy classify cryptocurrency as property, allowing miners to deduct expenses while taxing mining income based on market value at the time of receipt.

Siberia's favorable conditions, such as low electricity rates and cold climates, have made it a popular destination for crypto miners.

These restrictions could significantly impact major mining firms like BitRiver, which depend on the low electricity costs available in regions like Irkutsk.

Earlier this month, the government set a power consumption limit of 6,000 kWh per month for unregistered individual miners, requiring those who exceed it to register as entrepreneurs.

Under the new laws, cryptocurrency transactions will be exempt from value-added tax, and personal income tax on crypto earnings will be capped at 15%.

Russian authorities are implementing a ban on cryptocurrency mining in specific regions, including occupied territories in Ukraine, to address power shortages during the winter months.

The ban will take effect in Siberia from December 1, 2024, to March 15, 2025, with annual restrictions extending from November 15 to March 15 through 2031.

This decision follows a meeting led by Deputy Prime Minister Alexander Novak, who emphasized the need for restrictions during peak energy demand seasons.

Plans are underway to establish national cryptocurrency exchanges in St. Petersburg and Moscow, indicating further development in Russia's crypto landscape.

The new regulations also prohibit foreign individuals from mining in Russia and empower the government to ban mining in areas facing potential power shortages.