Crypto Clampdown: Russia's Winter Ban on Mining

Russia is banning cryptocurrency mining in Siberia's regions during winter to prevent power shortages. In annexed Ukraine areas, mining is restricted due to damaged energy infrastructure. Russia expects to collect significant taxes from miners after enacting a new regulatory law in 2023.

Russia has decided to ban cryptocurrency mining in several Siberian regions this winter, aiming to prevent power shortages, a government commission announced Tuesday. The measure targets three regions near Lake Baikal, known for low-cost electricity primarily from hydropower plants.

In parts of Ukraine considered annexed by Russia, mining faces restrictions due to damaged energy infrastructure following the 2022 invasion, which caused significant power outages. Mining in Russia is estimated to consume 16 billion kilowatt-hours annually, about 1.5% of the nation's electricity, adding strain in cold climates.

Globally, Russia joins the U.S., China, Kazakhstan, and Canada as leaders in crypto-mining. The country recently introduced laws regulating mining, with plans to levy taxes potentially raising up to 200 billion roubles annually from the industry.

(With inputs from agencies.)