Russia Bans Bitcoin Mining in Moscow Until 2032 Despite Ranking Second Globally

Despite ranking second in global Bitcoin mining, Russia has halted activities in Moscow and its surrounding areas until 2032, citing energy supply risks.

Decree No. 936 has banned cryptocurrency mining in Moscow, the Moscow Region, and parts of Kursk. The regulation covers both mining facilities and participation in crypto mining pools. The decree was signed on July 25 and published on July 31. The ban will remain in effect until December 31, 2032.

According to Luxor’s Hashrate Index data, Russia accounted for 16.4% of global Bitcoin hash power in the first quarter with 175 EH/s of computing power. This figure placed the country in second place behind the US. However, the exact mining capacity within the regions covered by the new ban remains unknown. Therefore, it is not currently possible to definitively measure the decision’s impact on the global network.

Bitcoin Mining Banned in Moscow Until 2032

The Ministry of Energy explained the reasoning for the ban as the risk of potential deficits in regional electricity capacity. Mining activities consume approximately 1 gigawatt in the Moscow power system. According to data reported by Interfax, data center capacity in the region could reach 3.6 gigawatts by 2032. This level is expected to correspond to 17% of peak electricity demand.

The decision also has a background related to sanctions. In 2022, the US Treasury Department added the Russian mining company BitRiver and 10 of its subsidiaries to the sanctions list. Finance Minister Anton Siluanov stated in December 2024 that Bitcoin produced through local mining was being used in international payments to circumvent Western sanctions. Regulations adopted in July maintained the ban on domestic cryptocurrency payments while preserving exceptions for foreign trade payments and assets derived from mining. Consequently, how will the ban affect Russia’s mining landscape and alternative payment channels?