Hold onto your hats, folks, because Russia is shaking things up in the world of crypto mining, and it’s quite the rollercoaster! Starting January 2025, crypto miners in at least ten Russian regions are getting a time-out until March 2031. Why, you ask? Well, it seems the Russian government is hitting the brakes on crypto mining due to the nation gulping down energy like a marathon runner at a water station.
It all started with a winter ban, but now the government is saying, “Why stop there?” They've extended this pause for a whopping six years! According to local buzz, the Russian Cabinet of Ministers has put the kibosh on crypto mining in select areas, starting from January 1, 2025, to March 15, 2031. The regions feeling the freeze include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and a few others. But don't get too cozy with that list—it might change as the government decides on its energy game plan.
But wait, there’s more! The ban also temporarily affects some territories in the Irkutsk, Buryatia, and Zabaikalsky Krai regions during their energy-consuming months. So, miners in these areas will have to take a break from January 1 to March 15 in 2025 and from November 15 to March 15 in following years.
Why all this fuss, you wonder? Well, Russia is trying to keep its energy balance in check. Last year, it became the world’s second-largest crypto miner after the US, using a staggering 16 billion kilowatt-hours of electricity annually for mining. That’s enough to power a small country! With crypto mining gobbling up 1.5% of Russia’s energy, it’s been a bit of a headache, especially for regions with frosty climates. Plus, it’s led to some confusion over electricity bills, and the government is keen to straighten things out.
Sergey Kolobanov, a big shot at the Center for Strategic Research, explained that there’s been a bit of a shuffle with electricity costs, where the low cost in some regions is balanced by higher costs elsewhere. The plan is to sort this out by the time the crypto mining restrictions end.
And here’s the kicker: Russia recently gave the green light to crypto mining and rolled out a registration service so the Federal Tax Service can keep tabs on miners’ assets and wallets. So, while it’s a bit of a bumpy ride for miners, Russia’s keeping things interesting in the crypto world!
