Russia to ban Bitcoin mining in key regions due to electricity deficit

Cryptocurrency mining will soon be banned in certain regions of Russia due to ongoing electricity shortages, according to Deputy Energy Minister Evgeny Grabchak.

As reported by Russia’s state news agency TASS, Grabchak announced that mining activities will be prohibited in areas facing severe energy deficits, including the Far East, southwestern Siberia, and the South. These regions are currently unable to support large-scale power usage, and it is expected that energy capacity will not improve until at least 2030.

This announcement comes shortly after Russian President Vladimir Putin signed a new law regulating cryptocurrency circulation, which is set to take effect on November 1. The legislation grants the Russian government the authority to ban cryptocurrency mining in specific regions and establish the procedures for such restrictions. The ban could also extend to mining pools—servers used to distribute the computing power required for cryptocurrency mining.

Additionally, the newly signed law introduces a ban on cryptocurrency-related advertising, including ads for crypto exchanges, blockchain services, smart contracts, and crypto mining activities. This follows a policy change by Yandex, Russia’s largest search engine, which updated its advertising guidelines in August to prohibit ads for crypto services within the country. This includes restrictions on advertisements promoting earnings from crypto activities, as well as services that analyze crypto wallets and transactions for potential money laundering.