Russian authorities have issued a decree banning cryptocurrency mining in Moscow city, the Moscow region, and parts of the Kursk region [1].
The move signals a tightening of state control over energy resources as the government seeks to prioritize residential and industrial power needs over digital asset production.
Federal and regional energy officials said the ban is necessary to protect the electricity grid and avoid future power shortages [4]. The high energy consumption associated with cryptocurrency mining has created significant strain on local infrastructure. In the affected regions, the estimated electricity consumption for mining operations has reached 1 GW [1].
The prohibition is scheduled to remain in effect through the end of 2032 [2]. While some reports suggest the ban may extend to 10 regions with a different expiration date, primary sources confirm the long-term restriction for the capital and surrounding areas [2, 3].
Moscow city and the Moscow Oblast serve as central hubs for both financial activity and energy distribution. By removing mining operations from these zones, the government aims to stabilize the voltage and reliability of the power supply for millions of citizens and businesses.
The decree also targets parts of the Kursk region, extending the restriction beyond the immediate vicinity of the capital [1]. This geographic expansion indicates that the Russian government is identifying specific energy-stressed zones where the power grid cannot support the intensive demands of blockchain hardware.
Authorities said the measure is a preventative step to ensure that critical infrastructure does not fail during peak demand periods. The ban effectively forces mining operations to either shut down or relocate to regions where the energy grid is less burdened.
“The prohibition is scheduled to remain in effect through the end of 2032.”
This decree reflects a growing conflict between the energy-intensive nature of cryptocurrency mining and national infrastructure stability. By implementing a ban that lasts nearly seven years, Russia is prioritizing grid reliability over the growth of the domestic crypto-industry. This shift may lead to a migration of hash rate to other regions or countries, potentially impacting the global distribution of Bitcoin mining power.
