Russia to Ban Cryptocurrency Mining in Certain Regions Due to Electricity Shortages

Russia will soon prohibit Bitcoin (BTC) mining in several regions due to a critical electricity shortage, Russia's state news agency TASS reports

Russia will soon ban Bitcoin (BTC) mining in several regions due to a critical electricity shortage, TASS reports.

Deputy Energy Minister Evgeny Grabchak stated that areas such as the Far East, southwestern Siberia, and the South are currently experiencing significant energy deficits, making it impossible to provide large power capacities until at least 2030.

"In these regions, the connection of new consumers to the grid, including cryptocurrency miners, will be banned," he said, as per the report.

The statement comes after President Vladimir Putin recently signed a law regulating the circulation of cryptocurrency, set to take effect on Nov. 1. The legislation grants the Russian government the authority to ban cryptocurrency mining in specific regions or territories and establishes protocols for implementing such restrictions.

The ban may also extend to participation in mining pools, which are servers used to distribute the load of cryptocurrency mining. Several Russian officials have previously expressed concerns over the impact of large-scale cryptocurrency mining on the country's electricity supply.

In related news, the newly signed law also prohibits advertising related to cryptocurrency and services that utilize it. Back in August, Russia’s biggest search engine, Yandex, updated its advertising policies to ban ads for crypto services within the country.

According to a statement from Yandex, the ban specifically prohibits advertisements for crypto exchanges, blockchain services, smart contracts, crypto mining, and initial coin offerings (ICOs), as well as any ads promoting earnings from these activities. The policy also restricts advertising for services that check crypto wallets and transactions for money laundering activities.