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For a period of six years, it will be in effect.
According to reports from the state-owned news outlet Tass, the Russian government has implemented a six-year ban on the mining of cryptocurrencies in 10 different locations. As the key reason for the prohibition, Russia has highlighted the high power consumption rates of the industry as the primary consideration. Mining operations already account for almost 2.5 percent of the total energy consumption in the United States. Cryptocurrency is particularly power-hungry.
The prohibition will go into force on January 1 and will remain in place until March 15, 2031. Additionally, the Council of Ministers of the country has said that similar bans might be necessary in other locations during times of peak energy consumption. Or, it could travel in the opposite direction. Depending on the findings of a government commission that investigates shifts in energy consumption and determines that it is essential, the prohibition might be temporarily withdrawn or adjusted in particular places.
Since November 1, Russia has had a tumultuous relationship with the activity of cryptocurrency mining. As a result, the mining of cryptocurrencies has only just been entirely legal in Russia. In addition to being required to register with the Ministry of Digital Development, miners are subject to constant monitoring of their energy consumption limitations.
Back in 2022, the nation made it illegal to utilize cryptocurrency as a form of legal cash; however, it allows permit payments to be made over international borders. In the aftermath of Russia's invasion of Ukraine, the latter is widely interpreted as an attempt by Russia to evade sanctions on the situation.
The mining of cryptocurrencies has been put on hold in a number of countries, including Russia, due to the excessive energy requirements of the business. In 2022, Kosovo criminalized the practice in order to reduce its consumption of electricity amid a period of energy crisis. The same thing happened in April of 2024 with Angola. The law of that nation goes one step further and makes cryptocurrency mining a criminal offense. Because of the lack of available energy, a number of European nations, including Iceland and Norway, have begun to implement stringent regulations throughout the industry.
