Russia Hits Pause on Expanding Crypto Mining Restrictions

In a surprising shift, Russia has shelved plans to widen its crackdown on crypto mining, choosing economic stability over stricter energy controls.

The government backed away from expanding its regional mining bans after concerns emerged about declining tax revenues and underused energy infrastructure.

The change came during a meeting of the federal energy commission, where authorities reconsidered requests from regions seeking year-round mining restrictions. Proposals from Karelia, Penza, and Khakassia were either withdrawn or rejected, while decisions on Buryatia and Zabaykalsky Krai were postponed.

Instead of broadening the ban, officials are now focusing on a new approach: relocating mining operations to power-rich regions with surplus energy. The Ministry of Energy and other regulators were tasked with creating incentives to attract miners to these areas—particularly those with unused fuel supplies impacted by Western sanctions.

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Although crypto use remains limited in Russia, mining has been fully legalized under specific tax and registration requirements. Yet, regions like Irkutsk, known for cheap electricity, have struggled with unregulated mining in both large farms and private setups, prompting earlier bans.

At present, nearly a dozen Russian regions—including parts of the North Caucasus and occupied Ukrainian territories—remain under long-term mining restrictions lasting until 2031. But for now, broader expansion of those bans has been paused, as Moscow weighs the economic cost of pushing miners out.