- The Russian Energy Ministry is considering banning crypto mining in three more regions due to electricity grid pressures.
- Industrial miners in Karelia propose tariffs and increased taxes as alternatives to bans.
The Russian Energy Ministry is contemplating extending its ban on cryptocurrency mining to three additional regions: Karelia, Penza Oblast, and Khakassia. This consideration arises from the continued strain on local electricity grids caused by energy-intensive mining operations.
Amidst these concerns, some industrial miners are suggesting alternative solutions, such as the implementation of tariffs and increased taxes, as potentially more effective measures than complete, outright bans on crypto mining activities within the regions.
Mining Restrictions: Bans vs. Alternative Measures
The proposed bans follow previous restrictions implemented in Russia. Earlier this year, Moscow prohibited mining during winter in ten regions and imposed a year-round ban in the southern part of the Irkutsk Oblast until 2031. Irkutsk is a major Bitcoin (BTC) mining hub in Russia.
Government officials in other regions, like Buryatia and Transbaikalia, have also requested miners to reduce their activity during peak energy consumption periods to alleviate stress on energy infrastructure. Andrey Maksimov, from the Energy Ministry, has indicated that further expansion of the ban is possible based on regional requests.
However, the ministry has not definitively decided if more bans are the optimal solution. Industrial miners in Karelia argue that alternative financial measures could be more effective in regulating the industry.
Sergei Maksakov, from the Karelia Chamber of Commerce and Industry, suggests that differentiated electricity tariffs and partial capacity relinquishment by miners could provide better control than complete bans. He emphasises the importance of consulting with businesses before making legislative changes to ensure a balanced approach that benefits both the energy sector and the mining industry.
Kuwait’s Ban and a Shifting Global Landscape
Kuwait has officially banned Bitcoin mining, citing excessive energy consumption and legal violations, reinforcing its broader anti-crypto stance following a 2023 nationwide prohibition on various crypto activities by the Capital Markets Authority.
This latest enforcement, part of a joint ministerial initiative, aims to curb infrastructure degradation and promote responsible energy use.
In contrast, other countries are adopting more welcoming policies: El Salvador is leading in renewable‐energy–powered, state-backed mining operations; Russia has legalised crypto mining and experienced a surge in domestic activity, and nations such as Belarus and Pakistan are exploring the use of surplus electricity for mining to stimulate their economies.
Even in the United States, the narrative is shifting, with the Trump-led administration advocating for clearer regulations and supportive policies to bolster America’s position in the global crypto mining sector.