Russia Cracks Down on Bitcoin Mining in Moscow

Russia has issued a seven-year ban on Bitcoin mining in Moscow and surrounding areas, citing concerns over energy capacity shortfalls. The decree, signed by an unnamed government official on July 25, prohibits both individual miners and pools from operating within the restricted zone until December 31, 2032.

The move follows years of criticism from the US Treasury, which has accused Russian mining firms of helping the country monetize its energy resources and potentially blunting the impact of sanctions. Moscow's decision to restrict mining is seen as a response to this pressure.

Russia generates an estimated 16.4% of Bitcoin's worldwide computing power, with much of that coming from the affected regions. The ban will likely have significant implications for the global hashrate and could lead to capital migration toward areas with more abundant energy resources.