Starting January 1, 2025, Russia will impose a ban on cryptocurrency mining in ten regions, which will remain in effect until March 15, 2031.

The regions affected by this ban include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and several occupied territories in Ukraine.

This decision is largely a response to ongoing electricity shortages and the burden of unpaid energy bills, aiming to better allocate energy resources.

The primary motivation for the ban is the high power consumption associated with crypto mining, which has significantly strained local energy supplies.

Particularly in regions with limited infrastructure, cryptocurrency mining has placed a considerable strain on Russia's power grid.

President Vladimir Putin has previously warned about potential power shortages due to cryptocurrency mining activities, especially in energy-strained areas.

Both individual miners and mining pools will be required to cease operations during the restricted periods, marking a significant regulatory step by the government.

The ban aligns with the end of a transition period aimed at eliminating privileges related to energy consumption for mining operations.

These measures follow new legislation signed by Putin in late 2024, which grants the government authority to impose such mining bans.

The list of regions affected by the ban may be revised based on recommendations from a government commission on electric power development.

As of December 2024, Bitcoin mining in Russia accounts for 4.7% of the global hashrate, a significant decrease from previous years, indicating the impact of regulatory changes.

Future lifting of the ban could occur if market conditions improve and energy supply stabilizes, particularly after the liberalization of the electricity market.