Why the world’s second-largest Bitcoin mining power is shutting down rigs in its capital city
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Crypto mining was banned in Moscow, the surrounding Moscow Region and parts of Kursk, with the restrictions set to run through Dec. 31, 2032.
Key facts
- Russia legalized registered crypto mining back in 2024, before banning the activity in 10 regions through March 2031, citing electricity demand
- Crypto mining was banned in Moscow, the surrounding Moscow Region and parts of Kursk, with the restrictions set to run through Dec. 31, 2032
- Russia as a whole accounted for an estimated 175 exahashes per second, or 16.4% of Bitcoin’s global computing power, in the first quarter, according to Luxor’s Hashrate Index
- Adding to that, the U.S. Treasury sanctioned BitRiver and 10 subsidiaries in 2022, saying Russian mining companies helped the country monetize its energy resources and could offset the impact
Summary
Moscow and parts of Kursk banned crypto mining and pool participation through Dec. 31, 2032, under government decree No. 936 to preserve power grid stability. The Energy Ministry enacted the year-round restriction to mitigate power-capacity shortages as energy-intensive mining facilities continue to strain regional grids. This decision follows Russia's legalization of registered mining in 2024 and subsequent bans in 10 other regions due to rising electricity demand. The measure, established under government decree No. 936, also prohibits participation in crypto mining pools.