Russia Cracks Down on Moscow Bitcoin Mining Amid Energy Fears
Russia has imposed a ban on Bitcoin mining in Moscow and surrounding areas until 2032 due to energy supply risks, despite ranking second globally in terms of hash power.
The decree, signed by an unknown official on July 25 and published on July 31, prohibits both mining facilities and participation in crypto mining pools within the affected regions. The ban will remain in effect until December 31, 2032.
Russia accounted for 16.4% of global Bitcoin hash power in the first quarter with 175 EH/s of computing power, according to Luxor's Hashrate Index data, placing it second behind the US.
The Ministry of Energy cited regional electricity capacity deficits as the reason for the ban, noting that mining activities consume approximately 1 gigawatt in the Moscow power system. The ministry also mentioned a potential increase in data center capacity to 3.6 gigawatts by 2032, which would correspond to 17% of peak electricity demand.