Key Takeaways
- Russia plans to restrict Bitcoin mining in 13 regions to conserve power.
- Major mining hub Irkutsk and other Siberian areas face limits until 2031.
- New mining laws ban foreign miners and allow targeted regional bans.
Russia’s Deputy Prime Minister Alexander Novak announced plans on Nov. 19 to limit Bitcoin mining in 13 regions facing power challenges.
These include major crypto mining hubs like Irkutsk and occupied Ukrainian territories such as Donetsk, Luhansk, Zaporizhzhia, and Kherson.
The restrictions aim to alleviate strain on electricity supplies during peak demand in autumn and winter.
New mining laws
The proposed measures, if approved, will remain in effect until 2031, covering Siberian regions like the Republic of Buryatia and Zabaikalsky Krai, and other areas including Dagestan, North Ossetia-Alania, and Chechnya.
Impact on Russia’s Bitcoin mining industry
Irkutsk, a critical region for Bitcoin mining due to its low-cost hydroelectric power and favorable climate, would be severely affected by the restrictions.
BitRiver, one of Russia’s largest crypto mining firms, operates its flagship data center in Bratsk, a city home to a massive hydroelectric power station with a 4,500-megawatt capacity.
The Siberian region’s cheap electricity and renewable energy resources have made it a popular hub for mining operations. The restrictions, however, may force miners to relocate or scale down activities.
Regulatory framework adds pressure
In addition to these power-related measures, Russia’s newly introduced crypto mining laws, signed by President Vladimir Putin in 2024, ban foreign entities from mining and allow regional mining bans where energy supplies are vulnerable.
