Russia Bans Crypto Mining in 10 Regions, But Is Not Completely Against Crypto

As discussions heated up around U.S President Donald Trump's plans to establish a Bitcoin [BTC] reserve, other major powers like Russia and China also hinted at similar moves.

Russia has announced a ban on cryptocurrency mining in 10 regions, a move that signals a contrasting approach to digital assets and highlights the varying global positions on cryptocurrency regulation and adoption.

According to a recent report by the TASS Russian News Agency, 10 regions have been included in the ban, which will take effect on 1 January 2025. These regions are Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, and in the Zaporizhia and Kherson regions.

Additionally, temporary restrictions will be imposed on certain areas during peak energy demand periods, including the Irkutsk region, Buryatia, and the Trans-Baikal Territory.

Officials have stated that this decision to impose restrictions on crypto mining is aimed at addressing regional energy demands, while also resolving disparities in electricity pricing.

For example, Sergey Kolobanov, Deputy Director of the Center for Economics of Fuel and Energy Complex at the CSR, highlighted that maintaining low electricity prices in certain oblasts often leads to higher costs for other consumers, creating an imbalance.

Regional policy specialist Vladimir Klimanov supported this position, stating that establishing equitable electricity pricing across the country to ensure fairness and stability in the energy market is important.

“Traditionally, residents and businesses in central Russia actually pay part of the costs that arise due to low electricity tariffs in the regions of the North Caucasus or the Far East,” Klimanov said.

“The measures introduced by the government should contribute to more equitable conditions for doing business in such a specific area throughout the country,” he added.

It is important to note that the mining ban does not indicate that Russia is completely closing the door on digital assets.

In fact, Russian President Vladimir Putin recently acknowledged the growing prominence of cryptocurrencies like Bitcoin and recognized their potential to transform global financial systems.

Speaking at the Moscow Investment Forum on 4 December, Putin’s comments reflected a shift in perspective, with opinions transitioning from criticism of Bitcoin to a more balanced position that stops short of outright prohibition.

“Who can ban Bitcoin? Nobody. And, who can prohibit the use of other electronic means of payment? Nobody. Because they are new technologies,” Putin said.

This evolving outlook suggests that Russia may yet find a way to harmonize its regulatory framework with the opportunities presented by digital currencies.