Russia to Impose Temporary Crypto Mining Ban in Select Regions Due to Power Grid Concerns

The news first broke on October 30, reported by Russian state agency TASS. It comes as Russia strengthens its position as a major player in the crypto-mining space. In 2023, Russian firms mined more than 54,000 BTC, reflecting significant state support for the industry. With rising power demands, the government is enforcing this temporary restriction. However, officials have not yet clarified which regions will be directly affected.

These limitations are part of a broader crypto regulation policy introduced this year. A new law, taking effect on November 1, will give the government more control over the mining sector. This includes the authority to regulate mining pools and to limit mining operations in areas with power shortages.

Despite the mining ban, Russia’s overall support for cryptocurrency remains robust, particularly in its push for crypto-based cross-border payments. At the recent BRICS Summit, Russia promoted the use of crypto as a tool for cross-border payments. 

The delegation suggested using crypto to support BRICS Pay, a proposed digital payment system to strengthen financial ties between BRICS nations. Russia’s endorsement of digital currencies, including Bitcoin, also reflects its strategy to bypass U.S. sanctions. This approach underscores its ongoing commitment to digital finance in global trade.

Today, the U.S. Treasury introduced fresh sanctions on hundreds of entities with ties to Russia, including several from BRICS member countries. As Russia navigates both domestic and international challenges, this temporary mining suspension shows a balancing act between managing infrastructure needs and supporting digital currency for economic resilience.