Russia to ban Bitcoin mining in key regions due to electricity deficit

Cryptocurrency mining will soon be banned in certain regions of Russia due to electricity shortages, per Deputy Energy Minister Evgeny Grabchak.

Russia will soon prohibit Bitcoin (BTC) mining in several regions due to a critical electricity shortage, Russia’s state news agency TASS reports, citing Deputy Energy Minister Evgeny Grabchak.

Speaking at a tech forum, he said that areas such as the Far East, southwestern Siberia, and the South are currently experiencing significant energy deficits, making it impossible to provide large power capacities until at least 2030.

The statement follows Vladimir Putin’s recent signing of a law regulating the circulation of cryptocurrency, set to take effect on Nov 1. The legislation grants the Russian government the authority to ban cryptocurrency mining in specific regions or territories and establishes protocols for implementing such restrictions. The ban may also extend to participation in mining pools, which are servers used to distribute the load of cryptocurrency mining.

Furthermore, the newly signed law prohibits advertising related to cryptocurrency and services that utilize it. In August, Russia’s biggest search engine, Yandex, updated its advertising policies to ban ads for crypto services within the country.

According to a statement from Yandex, the ban specifically prohibits advertisements for crypto exchanges, blockchain services, smart contracts, crypto mining, and initial coin offerings, as well as any ads promoting earnings from these activities. The policy also restricts advertising for services that check crypto wallets and transactions for money laundering activities.