The Russian government has banned cryptocurrency mining in ten regions for a period of six years. . Russia cited high energy consumption in the industry as the main reason for the ban. Cryptocurrency is particularly energy-intensive since mining operations already account for .
This ban comes into force on January 1 and will last until March 15, 2031. The country's Council of Ministers also said that additional bans may be required in other regions during periods of peak energy demand. It could have gone differently. The ban could be temporarily lifted or modified in some regions if a government commission studies changes in energy demand and deems it necessary.
Cryptocurrency mining only exists because there was . Miners must register with the Ministry of Digital Development, and energy consumption limits are constantly monitored.
The use of cryptocurrencies is prohibited in the country but allows cross-border payments. The latter is largely seen as Russia's attempt to avoid sanctions. .
Russia is not the only country that has put an end to cryptocurrency mining due to the industry's obscene energy demands. Kosovo to save electricity during an energy crisis. Angola . The country's law goes even further and criminalizes cryptocurrency mining. A number of European countries began to strictly regulate the industry due to energy shortages.