Russia Announces Six-Year Crypto Mining Ban In Key Regions Starting 2025 – Details

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As a seasoned crypto investor with roots deeply entrenched in the Russian digital landscape, I find the recent announcement of a six-year mining ban in key regions by the Russian government somewhat perplexing. My personal journey in this space has been marked by adaptability and resilience, traits that have served me well amidst ever-evolving regulatory landscapes.

Based on regional news sources, it appears that the Russian government plans to outlaw cryptocurrency mining operations in ten significant regions due to the recently passed industry-specific laws. Furthermore, they may enforce seasonal bans on additional territories and could expand the list as part of their ongoing efforts to address the electrical shortage within the country.

Key Regions Face 6-Year Mining Ban

On December 24th, the Russian government announced through TASS news agency a prohibition on crypto mining activities in certain crucial regions and territories, which takes effect from January 1st, 2025. This ban is aimed at preserving energy balance and remains in force until March 15th, 2031.

The report proposes a six-year prohibition on cryptocurrency mining and related activities like mining pools in the regions of Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk and Lugansk People’s Republics, Zaporizhzhya, and Kherson.

Moreover, certain regions within Irkutsk, Buryatia, and Zabaikalsky Krai are subject to an extended temporary embargo on specific periods. These embargoes will be enforced from January 1 to March 15, 2025, as well as from November 15 to March 15 in subsequent years, due to peak energy consumption seasons.

The government mentioned that the current list of areas is tentative, subject to change depending on future advancements in the electric power industry. Local experts shared with a news outlet that this restriction is connected not just to the local power supply issues, but also to special electricity payment arrangements in certain regions.

Sergei Kolobanov, a deputy at the Center for the Economy of Fuel and Energy Sectors, stated that the prohibition is timed to coincide with the conclusion of the phase-out period for phasing out this particular advantage.

Crypto Mining Landscape In Russia

In September, the Prime Minister of the southern Republic of Dagestan, Abdulmuslim Abdulmuslimov, called on the Russian government to intensify efforts against unlawful mining operations in the area. He urged authorities to closely monitor and adapt to the innovative techniques miners employ for their operations.

Next month, Deputy Energy Minister Evgeny Grabchak disclosed that the persistent electrical issues in crucial regions have made it difficult to provide substantial power capacities until 2030. As per Bitcoinist, Evgeny Grabchak declared that certain regions of Russia would prohibit all types of mining due to a recent law signed by President Vladimir Putin.

Starting in November, President Putin signed a law that governs digital currency transactions. The intention behind this law is to increase the government’s oversight of crypto mining operations. Under the terms of this legislation, the Russian government has the authority to ban mining activities in certain regions or specific areas, as well as set the circumstances and instances where restrictions may be imposed.

Furthermore, these changes granted the government authority to oversee the operations of firms supplying mining infrastructure. Additionally, it provided the Federal Tax Service with jurisdiction to manage the miner’s registry, a duty previously handled by the Ministry of Digital Development.

Significantly, the registry forms a crucial aspect of the law passed in August, which officially recognized the mining industry within the nation. As of November 1, more than 150 companies have submitted applications to obtain a legal crypto mining permit in Russia.

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2024-12-25 01:11