Russia extends crypto mining ban across Moscow

Russia has prohibited cryptocurrency mining across Moscow, the surrounding Moscow Region and parts of the Kursk Region until the end of 2032, widening restrictions designed to protect electricity networks from power-intensive digital currency operations.

The measure will take effect on August 15, 2026, and remain in force until December 31, 2032. It covers both the mining of digital currencies and participation in cryptocurrency mining pools, closing a potential route through which operators could continue contributing computing power to operations based elsewhere.

Prime Minister Mikhail Mishustin signed Government Resolution No. 936 on July 25. The decree was published on the official legal information portal on July 31 and amends an earlier government order adopted in December 2024.

The final measure differs from a draft released by the Energy Ministry in June, which proposed introducing the restrictions from July 1. The approved decree instead establishes an August 15 starting date.

Along with Moscow and the entire Moscow Region, the ban applies to eight municipal districts in the Kursk Region: Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky and Khomutovsky. The city of Lgov is also included.

Several of the affected Kursk districts are close to the border with Ukraine, where electricity infrastructure and local demand patterns have been disrupted by continuing hostilities. Moscow and its surrounding region present a different challenge because of their dense population, concentration of businesses and rapidly expanding data-centre industry.

Cryptocurrency mining requires specialised computers to solve complex mathematical problems and verify transactions on blockchain networks. Large mining farms can operate thousands of machines continuously, consuming substantial amounts of electricity while also requiring cooling equipment.

Officials have increasingly treated mining restrictions as an instrument for managing regional energy deficits. Power consumption by miners can place additional strain on transmission networks, especially during periods of peak household and industrial demand.

Moscow is not considered a major centre for low-cost Bitcoin production when compared with Siberian territories offering inexpensive hydroelectric power. However, the capital region contains a large concentration of data centres and computing infrastructure capable of supporting industrial mining. Restricting the activity may allow available capacity to be redirected towards housing, transport, manufacturing and commercial development.

Russia legalised cryptocurrency mining under a regulatory framework that took effect in November 2024. Companies and individual entrepreneurs are permitted to mine after registering with the Federal Tax Service. Private individuals may operate without registration when their monthly electricity consumption remains below 6,000 kilowatt-hours, although reporting requirements still apply.

The government simultaneously retained the authority to prohibit mining in territories where energy shortages or network constraints make the activity unsustainable. That approach has produced a patchwork system in which mining is legal nationally but unavailable in designated regions.

Long-term restrictions were introduced from January 1, 2025, across several territories, including Dagestan, Chechnya, Ingushetia and other parts of the North Caucasus. Mining was also banned in Russian-controlled areas of Donetsk, Luhansk, Zaporizhzhia and Kherson.

Seasonal limits initially applied to parts of Buryatia, the Trans-Baikal Territory and the Irkutsk Region during periods of elevated winter electricity demand. Authorities later tightened the Irkutsk restrictions after concluding that seasonal controls were insufficient to protect local supplies.

The Moscow decision highlights Russia’s dual-track approach to digital assets. Authorities are seeking tighter control over mining and domestic cryptocurrency activity while supporting selected uses of digital currencies for international trade.

Businesses have been permitted to test cryptocurrency settlements in cross-border transactions as sanctions complicate access to conventional banking channels. Domestic payments for goods and services using cryptocurrency remain prohibited.

The State Duma has also advanced a broader legal framework for cryptocurrency trading under central bank supervision. The rules are intended to define which financial institutions may provide digital asset services and which categories of investors may participate.

Mining companies affected by the Moscow ban may relocate equipment to regions with spare generating capacity, seek data-centre customers outside the cryptocurrency sector or shut down operations. Relocation would require access to reliable electricity, suitable cooling systems and high-capacity internet connections.

Arabian Post – Crypto News Network