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EU Carbon Taxes Push Bitcoin Mining to Russia, Study Asserts
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The study, published by three Vietnamese investigators, found a positive relation between the EU’s carbon emissions pricing and a so-called “leakage” to cheaper jurisdictions, such as Russia.
Key facts
- To this end, the study examined daily power sector emissions from the EU, the rest of the world, and Russia from 2019 to 2025 and linked them to bitcoin daily closing prices
- The “Does Carbon Pricing Displace Crypto-Mining Emissions
- Even so, the study also acknowledges several limitations, including the negative effect of May 2021’s Chinese bitcoin mining ban on the established link and disregard of other relevant factors
- Also, starting in 2025, the Russian government implemented a crypto mining ban in certain regions, with an expansion to Moscow approved this year, which could complicate the operational relocation
Summary
A study shows strict EU carbon could be driving bitcoin miners to shift operations to Russia. Companies maximize profit by powering down EU rigs and booting up Russian ones during costly times. However, new 2025 Russian crypto mining bans could restrict this operational relocation strategy. The strict controls that the European Union (EU) exerts over carbon emissions might be a factor in the migration of these industries, at least operationally, to jurisdictions without carbon emissions taxes.