Russia to Impose Mining Ban in Select Regions

The Russian authorities are set to prohibit cryptocurrency mining in certain regions of the country. This was reported by TASS, citing a statement from Evgeny Grabchak, Deputy Head of the Russian Ministry of Energy.

He attributed the decision to a shortage of electricity.

“Currently, the deficit areas are the Far East, the southwest of Siberia, and the South. We cannot allocate large capacities there for anyone until 2030,” said Grabchak.

The official added that the ban would cover all cryptocurrency mining activities, including participation in pools.

The government’s authority to restrict mining in specific regions and territories is outlined in the laws “On DFA and digital currency” and “On electric power industry.” The Cabinet will be able to establish the procedure and cases for introducing such a ban.

Earlier, Deputy Anton Gorelkin, addressing industry participants’ concerns, stated that the authorities are not interested in upheavals and will use the measure “in exceptional cases.”

In July, basic regulation of cryptocurrency mining in Russia was adopted. ForkLog examined its impact on the industry in a separate article.

Additional amendments regarding mining, including provisions for its prohibition, were signed by President Vladimir Putin on October 25. They will come into effect on November 1.