Putin explained why Russia restricts mining of cryptocurrencies

Putin explained why Russia restricts mining of cryptocurrencies
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Russian President Vladimir Putin has announced the official reason for the tightening of rules for mining cryptocurrencies in the country. According to him, the federal government is receiving more and more complaints from regions where there is a shortage of electricity needed to implement priority infrastructure projects and ensure the operation of industry.

As the head of state noted, previously there was a surplus of energy capacity in some regions. This contributed to the active development of mining farms, but soon their activities led to an overload of networks and a shortage of resources. As a result, the government was forced to impose restrictions on the extraction of digital assets.

The mining law came into force in 2024. According to its provisions, legal entities and entrepreneurs engaged in crypto mining are required to register in the register of the Federal Tax Service. For individuals who are not registered as sole proprietors, mining is allowed at home, but on condition that their electricity consumption does not exceed 6,000 kWh per month.

Since January 1, 2025, mining has been completely banned in ten Russian regions. In Buryatia and the Trans-Baikal Territory, there is a temporary ban on peak loads. In the south of the Irkutsk region, the restriction, initially introduced temporarily, became indefinite from April of this year.

In addition to legal restrictions, government agencies are strengthening control over the equipment. The joint efforts of the Ministry of Energy, the Federal Tax Service and the Ministry of Finance have compiled a unified register of mining devices. This will make it possible to more effectively monitor the activities of farms, especially those who connect to the grid bypassing meters and without notifying regulatory authorities.

The measures taken by the government are aimed at protecting the energy balance of the regions and ensuring the priority of infrastructure and industrial projects. At the same time, according to experts, mining in regions with low electricity costs is still an attractive business, but requires strict compliance with the law.