Russian Energy Ministry Considers Extending Cryptocurrency Mining Restrictions
The Russian Energy Ministry is contemplating extending cryptocurrency mining restrictions to three additional regions due to escalating pressure on local electricity supply systems. According to TASS, the state news agency, potential bans are being focused on:
- Northern Karelia
- Penza Oblast situated over 600 kilometers southeast of Moscow
- Areas within Khakassia, located in Southern Siberia
A representative for Deputy Prime Minister Alexander Novak mentioned that a governmental committee is expected to discuss these mining prohibitions in May. While Khakassia was mentioned, no specific details regarding Karelia or Penza were provided.
Recent Mining Restrictions in Russia
These discussions follow a significant move made by Moscow to restrict bitcoin mining activities. Effective from January 1, 2025, a winter mining ban will be enforced across ten regions of Russia, including parts of Southern Siberia and the North Caucasus. Additionally, the first mandatory year-round mining ban was enacted on April 7 in the southern portion of Irkutsk Oblast, a central hub for Bitcoin mining in the country. In nearby regions like Buryatia and Transbaikalia, authorities have requested miners to cease operations during periods of high electricity demand to alleviate strain on the power grid.
Potential for Broader Bans and Alternatives
Andrey Maksimov, who leads the Department for the Development of the Electric Power Industry at the ministry, confirmed that there is a possibility of a broader ban. He noted that various regional governments have shown interest in implementing such restrictions. However, it remains unclear whether these areas are seeking permanent bans or just seasonal ones. Maksimov expressed an openness to exploring different regulatory measures rather than committing to outright bans.
Seeking Alternative Solutions in Karelia
In Karelia, some industrial miners have expressed a preference for reconsidering tax rates and electricity tariffs as a solution instead of outright prohibitions. Sergei Maksakov, the head of the economics, taxes, and finances committee at the Karelia Chamber of Commerce and Industry, emphasized the importance of dialogue between Moscow and miners to achieve a collaborative solution before any changes to legislation are made.
