Russian authorities have banned cryptocurrency mining in Moscow, the Moscow region and the Kursk region that borders Ukraine, according to reports published on July 31 by the Anadolu news agency and Ukrainian National News (UNN).
The restrictions cover the capital and its surrounding region, which hosts a large share of Russia’s industrial-scale mining capacity, as well as the frontline Kursk area, whose power grid has come under repeated Ukrainian drone and missile attacks during the war.
Russia legalized cryptocurrency mining in November 2024 under a federal law that requires miners to register with the Federal Tax Service and sets a cap on household electricity use for mining. The law gave the government authority to restrict mining in specific regions and territories in order to prevent electricity shortages.
Since then, Moscow has repeatedly used that authority. Seasonal bans have been imposed in regions with tight power balances during the winter heating period, typically from October through March, and restrictions have been applied in parts of Siberia and the North Caucasus. The new measures extend the same approach to the capital region and Kursk.
Kursk has been one of the areas most exposed to the war. Ukrainian forces staged a cross-border incursion into the region in August 2024, and local energy infrastructure has been a frequent target of long-range strikes, making the grid there particularly sensitive to additional power demand from mining farms.
Russia’s mining industry has grown rapidly since the 2024 legalization, with large data centers concentrated in energy-rich regions such as Irkutsk, Krasnoyarsk and the Moscow area. The capital region emerged as one of the country’s biggest mining hubs, and the new restrictions could push operators toward Siberia, where electricity is cheaper but grid capacity also tightens during winter demand peaks.
The ban is likely to accelerate a shift of Russian mining capacity toward regions with surplus electricity, such as those with large hydroelectric generation. Russia has become one of the world’s largest cryptocurrency mining hubs, with industry estimates in recent years placing its share of global bitcoin hashrate among the top three countries.
The move also reflects the Kremlin’s broader effort to manage energy supplies as Western sanctions squeeze equipment imports and refinery capacity. For miners in Moscow and Kursk, the immediate effect falls on registered operations, while unregistered miners in Russia already face fines and, in some cases, criminal liability under the 2024 law.
Sources: Anadolu Ajansi, Ukrainian National News (UNN)
Author: Russia Desk
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