Russia bans crypto mining in multiple regions, citing energy concerns
The Russian government has banned crypto mining in ten regions for a period of six years, according to reporting by the state-owned news agency Tass. Russia has cited the industry’s high power consumption rates as the primary reason behind the ban. Crypto is particularly power-hungry, as mining operations already account for nearly 2.5 percent of US energy use. This ban takes effect on January 1 and lasts until March 15, 2031. The country’s Council of Ministers has also stated that additional bans may be required in other regions during periods of peak energy demand. It could also go the other way. The ban could be temporarily lifted or altered in certain regions if a government commission examines changes in energy demand and deems it necessary. Cryptocurrency mining has only been fully legal in Russia since November 1, as the country has had a rocky relationship with the practice. Miners must register with the Ministry of Digital Development and energy consumption limits are continually monitored. The country banned the use of cryptocurrencies as legal tender back in 2022, but does allow cross-border payments. The latter is largely seen as an attempt by Russia to avoid sanctions in the wake of the invasion of Ukraine. Russia isn’t the only country to put the kibosh on crypto mining due to the industry’s obscene energy demands. Kosovo outlawed the practice back in 2022 to conserve electricity during an energy crisis. Angola did the same in April of 2024. That country’s law goes a step further and criminalizes crypto mining. Several European countries, like Iceland and Norway, have started to strictly regulate the industry due to energy shortages.This article originally appeared on Engadget at https://www.engadget.com/big-tech/russia-bans-crypto-mining-in-multiple-regions-citing-energy-concerns-163102174.html?src=rss
The Russian government has banned crypto mining in ten regions for a period of six years, according to reporting by the state-owned news agency Tass. Russia has cited the industry’s high power consumption rates as the primary reason behind the ban. Crypto is particularly power-hungry, as mining operations already account for nearly 2.5 percent of US energy use.
This ban takes effect on January 1 and lasts until March 15, 2031. The country’s Council of Ministers has also stated that additional bans may be required in other regions during periods of peak energy demand. It could also go the other way. The ban could be temporarily lifted or altered in certain regions if a government commission examines changes in energy demand and deems it necessary.
Cryptocurrency mining has only been fully legal in Russia since November 1, as the country has had a rocky relationship with the practice. Miners must register with the Ministry of Digital Development and energy consumption limits are continually monitored.
The country banned the use of cryptocurrencies as legal tender back in 2022, but does allow cross-border payments. The latter is largely seen as an attempt by Russia to avoid sanctions in the wake of the invasion of Ukraine.
Russia isn’t the only country to put the kibosh on crypto mining due to the industry’s obscene energy demands. Kosovo outlawed the practice back in 2022 to conserve electricity during an energy crisis. Angola did the same in April of 2024. That country’s law goes a step further and criminalizes crypto mining. Several European countries, like Iceland and Norway, have started to strictly regulate the industry due to energy shortages.This article originally appeared on Engadget at https://www.engadget.com/big-tech/russia-bans-crypto-mining-in-multiple-regions-citing-energy-concerns-163102174.html?src=rss
What's Your Reaction?
