Russia Bans Cryptocurrency Mining in Moscow Over Power Concerns

The Russian government has introduced a ban on cryptocurrency mining in Moscow and its surrounding region until the end of 2032, citing concerns over power consumption. The ban was signed under Government Decree No. 936, which prohibits all cryptocurrency mining and participation in mining pools in these areas.

The move aims to alleviate pressure on Russia's ailing power grid, which is reportedly struggling to meet increasing demand. At present, cryptocurrency mining consumes around 1GW of power in Moscow alone, with projections suggesting this could rise to 3.6GW by 2032, accounting for 17% of the grid's peak electricity demand.

This ban follows similar measures in ten other regions, where mining was banned through March 2031 due to electricity concerns. The move is likely to impact Russia's position as the second-largest Bitcoin miner in the world, with the country accounting for an estimated 175 exahashes per second in Q1 2026-16.4% of Bitcoin's global computing capacity.

However, the ban will not affect cryptocurrency mining in Siberian and eastern territories, where energy costs are significantly cheaper. As a result, much of the affected capacity may be relocated to these regions, taking advantage of lower energy prices.