Moscow, December 24, 2024 – The Russian government has announced the implementation of cryptocurrency mining bans across 10 regions, set to take effect on January 1, 2025. These restrictions will last for six years, concluding on March 15, 20311. Seasonal limitations will also be introduced in key mining regions to manage energy consumption during peak periods.
This decision stems from recently enacted cryptocurrency mining legislation signed into law by the Russian president in August and October 2024. The measures aim to address energy concerns while allowing controlled mining operations in select areas1.
Complete Bans vs. Seasonal Restrictions
The mining ban will be fully enforced in 10 regions, including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, Zaporizhzhia, and Kherson. These areas will see an outright prohibition on cryptocurrency mining activities1.
In contrast, mining activities in Siberian regions like Irkutsk, Buryatia, and Zabaikalsky will be subject to seasonal restrictions. These measures will apply during winter months when energy demand is highest1. Initially, the restrictions will span January 1 to March 15 in 2025, eventually extending to cover November 15 through March 15 in subsequent years.
Preserving Operations in Key Mining Hubs
The new regulations reflect a shift from an earlier proposal, which suggested banning mining in 13 regions, including Irkutsk, a critical hub for Russia’s cryptocurrency mining industry. Irkutsk has gained prominence due to its low electricity costs, attracting significant operations like BitRiver, which established its first and largest data center in Bratsk in 20191.
While the revised restrictions aim to balance energy management with economic interests, major industry players, such as BitRiver, have yet to comment on the potential implications of these measures.
Additional Information
The Russian government has also introduced new taxes on cryptocurrency transactions as Bitcoin reaches record levels against the ruble. On November 27, Russia’s Federation Council approved a federal bill that recognizes digital currencies as property and imposes a 13%-15% personal income tax on cryptocurrency sales1. The bill also exempts Russian crypto miners from value-added tax (VAT) on mined coins.
The legislation passed three readings in the State Duma and now awaits President Vladimir Putin’s signature to become law. Once enacted, it will take effect upon official publication1. The new law mandates that Russian crypto miners report their activities to local authorities, with failure to comply resulting in fines of 40,000 rubles (about $360). However, mining services provided by authorized operators will not be taxed within Russia1.
These measures align with cryptocurrency mining laws signed by the Russian president in August and October 2024. The laws aim to regulate the industry while addressing energy concerns1.