Russia Bans Bitcoin Mining in Moscow Over Power Grid Concerns

Crypto mining has been banned in Moscow, the surrounding Moscow Region, and parts of Kursk, with the restriction set to remain in place through December 31, 2032. The measure was established under government decree No. 936, which also prohibits participation in crypto mining pools. The decree was signed on July 25 and published on July 31, according to local media reports.

Russia’s Energy Ministry said the year-round restriction is necessary to reduce the risk of power capacity shortages, as energy-intensive mining facilities continue to place strain on regional power grids. Mining currently consumes roughly 1 gigawatt within the Moscow power system, while data-center capacity in the region could climb to 3.6 gigawatts, representing 17 percent of peak demand, by 2032.

Russia’s Major Role in Global Bitcoin Mining

Russia accounted for an estimated 175 exahashes per second, or about 16.4 percent of Bitcoin’s global computing power, during the first quarter, placing it second only to the United States, according to Luxor’s Hashrate Index. It remains unclear how much of that capacity was located within the newly restricted region.

Mining’s Connection to Sanctions Evasion

Bitcoin mining in Russia has also played a role in circumventing Western sanctions. Finance Minister Anton Siluanov said in December 2024 that Russian companies had been using domestically mined bitcoin for international payments following legal changes aimed at countering Western restrictions. Legislation passed by parliament in July maintained the country’s ban on domestic crypto payments but preserved exceptions for foreign-trade settlements and transactions involving mined cryptocurrency, keeping that channel available amid restricted access to conventional payment systems.

The U.S. Treasury sanctioned Russian mining company BitRiver and ten of its subsidiaries in 2022, stating that Russian mining firms were helping the country monetize its energy resources in ways that could offset the impact of sanctions.

Part of a Broader Pattern of Regional Bans

Russia first legalized registered crypto mining in 2024 before banning the activity in ten regions through March 2031, citing high electricity demand. Year-round restrictions were later extended to southern Irkutsk and most areas of Buryatia and Zabaykalsky Krai, making the Moscow ban the latest in a series of regional crackdowns tied to energy concerns.