Russia Bans Crypto Mining in Moscow Amid Energy Shortages

Russia's cryptocurrency mining industry is facing a significant blow as the country has banned mining operations in Moscow and several surrounding regions. The ban, which takes effect on August 15, 2026, and lasts until December 31, 2032, aims to stabilize the energy system and prevent capacity shortages.

The decision was made due to the high electricity consumption of mining operations in the region, which has exceeded one gigawatt. The Moscow region's Ministry of Energy had requested the ban as early as April 2026, citing rising electricity demand and insufficient economic benefits.

Operators now have a few weeks to comply with the ban, which may lead to costly relocation or even bankruptcy for some smaller operators. BitRiver founder Igor Runets has been placed in pretrial detention for alleged large-scale fraud connected to a contract with En+, adding to the challenges facing the industry.