Russia is further tightening encryption in the capital circle. According to government decrees cited in the local media, Moscow, the Moscow region and parts of Kursk have been subject to long-term restrictions, which will continue until 31 December 2032, with the participation of mining ponds being prohibited.
The ban covers Capital Circle.
This measure is implemented by Decree No. 936 of the Russian Government. The decree was signed on 25 July and published on 31 July. According to the Russian Ministry of Energy, the purpose of the year-round restrictions was to reduce the stress on electricity capacity and to reduce the pressure on high-energy mines after they reached the local grid.
It was reported that the Moscow electricity system currently consumed about 1 Giva in mining activities. By 2032, local data centre capacity may rise to 3.6 gigawatts, about 17 per cent of peak electricity demand.
It's been extended to multiple areas.
In 2024, Russia legalized a registered and encrypted mining mine, but subsequently imposed a ban on 10 regions due to increased demand for electricity, which was to last until March 2031. Subsequently, the southern Irkutsk, most of Briat and most of the post-Begar border areas were also included in the year-round restrictions.
According to Luxor Hashrate Index data, in the first quarter of this year Russia had a bitcoin calculus of about 175 ETH/s, 16.4 per cent of the global total, after the United States. However, the report did not provide data on the extent to which the new restricted areas accounted for the national budget.
Mining still involves cross-border payments
Russia's attitude towards mining is not only about electricity but also about payment arrangements in the context of sanctions. In December 2024, Russian Minister of Finance Silwanov stated that, following legal adjustments, Russian enterprises had begun to make international payments in bitcoin extracted from their own countries.
The legislation adopted by the Russian Parliament in July of this year continues to maintain the domestic embargo on encrypted payments, with the exception of foreign trade settlements and transactions related to encrypted assets derived from mining. This means that where traditional payment channels are restricted, the relevant mechanisms can continue to be used.
Additional information:In 2022, the United States Treasury Department imposed sanctions on BitRiver and 10 of its subsidiaries, claiming that Russian mining companies could exploit mines to realize energy resources and partially impact hedge sanctions.