Russian authorities are reportedly set to implement a ban on cryptocurrency mining in 10 regions and impose seasonal restrictions in three others starting January 1st, 2025, due to rising concerns over energy shortages. More Restrictions As outlined in a recent report by the state-controlled news agency TASS, the full ban will impact areas such as Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, and the newly annexed regions of Donetsk, Lugansk, Zaporizhzhia, and Kherson. This prohibition is expected to remain in place until March 15th, 2031. Additionally, three regions in Siberia, namely Irkutsk, Buryatia, and Zabaikalsky, will experience seasonal restrictions on mining during peak energy consumption periods. These limitations will be enforced between January to mid-March 2025 and will extend between November to March in subsequent years. Mitigating Power Shortages These actions come as a response to the cryptocurrency mining legislation signed by Russian President Vladimir Putin in late 2024, which aims to mitigate power shortages and blackouts. TASS reports that the energy-intensive process of PoW (Proof-of-Work) mining has strained the local power grid, especially in regions with limited infrastructure. Under these new measures, both individual miners and mining pools will be required to halt operations during restricted periods. Earlier this year, Bitcoin (BTC) miners in Russia reportedly generated billions of dollars worth of the flagship cryptocurrency, maintaining a substantial share of the global market.
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