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Russia Extends Crypto Mining Ban to Moscow and Kursk Through 2032 Citing Grid Strain

Russia has formally expanded its cryptocurrency mining ban to include Moscow, the Moscow Region, and nine territories in the Kursk Region, with restrictions tak…

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Russia Extends Crypto Mining Ban to Moscow and Kursk Through 2032 Citing Grid Strain
Article image: Russia Extends Crypto Mining Ban to Moscow and Kursk Through 2032 Citing Grid Strain

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Excerpts from the article

  • Russia has formally expanded its cryptocurrency mining ban to include Moscow, the Moscow Region, and nine territories in the Kursk Region, with…
  • The ban covers both direct mining operations and participation in mining pools. It marks a significant escalation from previous restrictions that…
  • According to the Moscow Region's Ministry of Energy, 65 data centers with a combined capacity of 734 megawatts are already connected to the grid in…

The projection for data center capacity in the Moscow region is 3.6 gigawatts by 2032, representing roughly 17% of the maximum load. The energy system already requires at least 950 megawatts of additional generation capacity. In Kursk, the ban applies to eight municipal districts — Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky, and Khomutovsky — plus the city of Lgov, where ongoing conflict in Ukraine has compounded energy pressures.

Russia legalized commercial crypto mining through Federal Law No. 221-FZ in late 2024, but that framework explicitly included provisions for regional restrictions where energy deficits exist or are forecast. The government has since applied those provisions aggressively, with mining bans now in place across more than 13 regions. A draft bill advancing through the State Duma would add criminal penalties for unregistered mining, including fines up to 2.5 million rubles (approximately $35,000) and prison sentences up to five years.

Industry analysts expect displaced miners to relocate to Siberia, the Russian Far East, or jurisdictions outside Russia such as Kazakhstan and Central Asia. However, most assessments consider a significant impact on global Bitcoin hash rate unlikely, given the regional scope of the restrictions. Russia accounts for an estimated 17% of global Bitcoin hash rate, though the Moscow and Kursk portions represent a subset of that total.