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Crypto miners in Moscow face new threat as Russia tightens rules

Russian authorities are increasingly likely to ban cryptocurrency mining in and around Moscow. At the same time, legislators are considering a new law that would send anyone mining without registering to jail.

Summary

  • A Russian power-industry commission has backed a proposal to ban crypto mining in Moscow, Moscow Oblast, and parts of Kursk until at least 2032.
  • Kommersant reported that the government is also weighing a wider mining ban across 19 regions within Moscow’s power distribution zone.
  • The State Duma has advanced a bill to criminalize illegal mining, with fines of up to 2.5 million rubles and prison terms of up to 5 years.

Russia is considering a ban on cryptocurrency mining in Moscow, the surrounding region, and parts of the Kursk region, potentially lasting until 2032. Evgeniy Grabchak, a deputy energy minister, stated that a government commission supports this proposal, according to TASS.

The ministry stated that local officials first brought up this matter in late April, and their views will be considered when a final decision is made, as reported by RBC.

Moscow area faces proposed six-year prohibition

According to reports from RBC and Bits.media, Sergey Voropanov, the Energy Minister for the Moscow Oblast region, believes that cryptocurrency mining doesn’t significantly help the local economy. He also pointed to successful outcomes from previous restrictions on mining in other areas.

Bits.media also noted that both the governor of Moscow Oblast, Andrey Vorobyov, and Moscow Mayor Sergey Sobyanin have suggested restrictions on cryptocurrency mining within their areas.

According to a recent report, there are at least 65 data centers in and around Moscow that are connected to the power grid. These centers have a combined power capacity of 734 megawatts, as stated by the Russian energy ministry.

I’ve been following reports, and according to Kommersant, the government is considering a ban on mining operations across 19 regions that fall within the Moscow power grid’s reach. This could significantly impact the Central Federal District, which Kommersant notes is the main economic hub of the country.

Governor Alexander Khinshtein of the Kursk region is suggesting limits on mining activity in eight districts and the city of Lgov.

Officials in Khinshtein’s region say the war in Ukraine has made their power supply issues worse. They believe stopping mining operations would free up electricity, helping to ensure enough power for homes and businesses.

Russian officials are looking at ways to ease pressure on power grids in areas with high energy use, and are considering limits in Kursk along with a similar plan for the Moscow region.

State Duma advances bill to criminalize illegal mining

As an analyst following developments in Russia, I’m reporting that the State Duma in Moscow has taken the first step towards making illegal cryptocurrency mining a crime. Reports from RIA Novosti and Prime indicate the bill has passed its first reading.

According to reports from RIA Novosti and Prime, a new draft law would punish illegal mining activities – like mining without proper registration or using stolen electricity – with penalties ranging from fines and forced labor to imprisonment.

Those running illegal businesses that earn significant profits or cause substantial financial harm could be fined up to 2.5 million rubles – roughly $35,000 – based on recent reports.

The new law enables up to five years in prison, mandatory labor, and fines for illegal mining operations linked to organized crime. It also allows authorities to seize assets connected to these activities, according to reports from RIA Novosti and Prime.

Tightening rules after mining was legalized in 2024

In 2024, Russia officially allowed cryptocurrency mining, citing its abundant energy resources and favorable climate as key benefits.

The report noted that when cryptocurrency miners gathered in areas with low-cost electricity, several regions experienced power shortages. In response, Russian officials last year prohibited mining in 13 areas until the spring of 2031.

The report indicates these areas are affected: Irkutsk Oblast, Buryatia, Zabaykalsky Krai, most of the republics in the North Caucasus, and four regions of Ukraine currently under occupation.

While mining is legal with registration and tax payment, a note about the proposed law reveals that only around 1,500 out of an estimated 50,000 mining businesses have actually registered so far.

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2026-05-27 22:12