Russia Institutes Partial Ban on Crypto Mining to Control Energy Use
The Russian government has announced a partial ban on cryptocurrency mining in ten regions until March 2031, primarily due to concerns over high energy consumption. This ban will be effective starting January 1, 2025, and includes participation in mining pools, with additional temporary restrictions possible during periods of peak energy demand. Regions affected by this measure include Dagestan, North Ossetia, and Chechnya, although the list may change based on an ongoing assessment of energy use. This move follows earlier regulations that prohibited the use of cryptocurrencies as legal tender internally, although cross-border crypto payments are still allowed. The decision reflects the government’s strategy to manage energy resources amid increasing power demand and utilization discrepancies across regions. Analysts expect that the measures will bring further scrutiny to crypto activities in Russia, which has a complex relationship with digital currencies following its invasion of Ukraine.
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