In response to the significant energy requirements of the industry, the Russian government has implemented a six-year prohibition on cryptocurrency mining in ten regions, effective from January 1 to March 15, 2031. This ban encompasses participation in mining pools and may include temporary restrictions in other regions during peak energy usage periods. Although Russia legalized cryptocurrency mining in July, with the law coming into effect last month, the use of cryptocurrencies as a form of legal tender for domestic transactions is prohibited.
However, the country permits cross-border payments using cryptocurrencies in an effort to circumvent sanctions imposed following its invasion of Ukraine. The regions subject to the ban, including Dagestan, North Ossetia, and Chechnya, may be adjusted based on the findings of a government commission assessing changes in energy demand. Furthermore, the ban considers inter-regional electricity subsidies that make power consumption more affordable in certain regions.