New Ban on Digital Currency Mining in Russia
In a recent decision by the Russian government, digital currency mining activities will be banned in Moscow and certain areas within the Moscow and Kursk Regions starting August 15, 2026. This prohibition is part of Government Resolution No. 936, signed by Prime Minister Mikhail Mishustin on July 25 and published on the official legal information portal just days later on July 31. This new measure enhances territorial mining restrictions laid out in an earlier decree dating back to December 2024.
Details of the Ban
The ban specifically targets mining operations and the participation in mining pools within Moscow and the entire Moscow Region. In the Kursk Region, the ban is applicable to designated municipal districts, which include Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky, and Khomutovsky, in addition to the city of Lgov. This creates a more comprehensive regional framework rather than a sweeping nationwide prohibition.
Rationale Behind the Decision
According to sources linked to the Energy Ministry, the rationale behind this extended restriction is to prevent potential power capacity shortages that could arise as energy-intensive mining operations draw from already strained local electric grids. Before this decree was enacted, energy authorities in the Moscow Region expressed concerns about the implications of unregulated mining activities.
Estimates suggest that cryptocurrency mining in the Moscow power system already consumes approximately one gigawatt of power. Projections indicate that by 2032, the capacity of data centers in Moscow and its vicinity could surge to about 3.6 gigawatts, accounting for an estimated 17% of the system’s maximum load. These numbers reflect planned growth rather than existing consumption levels.
Regional Restrictions and Compliance Measures
In Kursk, regional officials pushed for restrictions across the aforementioned districts to avoid overcrowding the local electricity framework. The finalized ban incorporated the specific areas proposed earlier. This move follows Russia’s legalization of cryptocurrency mining in 2024, after which regional limitations were enacted to better manage electricity supply during peak periods.
Additional restrictions already apply to various areas in the North Caucasus and have been approved through March 15, 2031, while different year-round regulations came into effect for parts of Buryatia and Zabaykalsky Krai starting April 1, 2026. A proposal to restrict mining in Moscow and Kursk was backed by a Russian power commission in May, lending it momentum for governmental approval.
In an effort to enforce these restrictions, the Russian government introduced a mining registry designed to track unregistered operators and potentially unauthorized mining equipment, thus promoting compliance within legitimate frameworks.
Impact on Businesses and Future Projections
Businesses currently engaged in mining within the newly established restricted zones must cease operations or relocate equipment by the stipulated deadline of August 15, which is just two weeks after the decree’s announcement. This extended ban is projected to remain in effect until December 31, 2032, unless further modifications are made by the government.
While some have speculated that these developments may influence Bitcoin’s global hash rate significantly, such claims remain unsubstantiated as the actual impact will only be measurable upon the enforcement of these regulations and subsequent guidance from the Russian energy authorities.
