The crypto mining gold rush in Siberia is grinding to a halt. Russia’s government, never one to shy away from heavy-handed control, is slamming the brakes on cryptocurrency mining across multiple regions. Starting January 1, 2025, miners in ten regions will have to pack up their rigs and find something else to do with their electricity.
Siberia’s crypto frontier faces a harsh winter as Russia prepares to shut down mining operations across ten regions by 2025.
It’s not just a temporary timeout. The ban stretches until March 2031 – that’s six long years of silence for mining operations in regions like Dagestan, Chechnya, and several others. Even the contested territories of Donetsk and Lugansk aren’t exempt from this sweeping crackdown. This sharp reversal comes just two years after Putin legalized Bitcoin mining in 2022. The Energy Ministry proposed these restrictions specifically to address severe power shortages in affected areas.
The timing isn’t random. Russia’s been watching its power grid strain under the weight of crypto mining operations. Irkutsk’s governor, fed up with blackouts and surging energy consumption, practically begged for a complete ban. When your average mining operation uses as much power as 100 homes, something’s got to give. The massive energy consumption mirrors global trends, where Bitcoin mining consumption rivals Argentina’s entire power usage.
Not that it’s been all bad for Russia’s coffers. Last year, crypto miners churned out 54,000 Bitcoin, stuffing state coffers with $550 million in tax revenue. The government was even dreaming of $2 billion annual revenues from the crypto industry. Guess those dreams will have to wait.
The new rules aren’t completely draconian. Small-time miners can still operate without registration, as long as they stay within power limits. But the big players? They’ll need official papers and a Russian business license. No more cowboy operations in abandoned warehouses.
Authorities aren’t just writing rules – they’re actively hunting down illegal operations. In one bust, they found enough mining rigs to power a small neighborhood. The government’s message is clear: play by the rules or don’t play at all.
Some optimists think this is just temporary. There’s talk about reviving Soviet-era power plants specifically for crypto mining. But for now, in the frigid expanses of Siberia, thousands of mining rigs are about to go dark. Energy stability, it seems, trumps crypto dreams.
