The Russian government has made a new decision limiting cryptocurrency mining in order to protect energy resources. The ban, which will come into force on January 1, will be implemented in 10 regions due to high energy consumption and will end on March 15, 2031.
Precautions Taken Due to High Energy Consumption
The government announced that the ban was specifically aimed at energy-intensive cryptocurrency mining activities. The Council of Ministers took this decision in order to prevent the energy crisis and support sustainable development goals. “High energy consumption threatens our development goals,” said the Chairman of the Council of Ministers.
Under the ban, participation in mining pools will be limited. Temporary restrictions may also be applied in other regions during periods of high demand. It was also announced that regional energy-saving subsidies will be reviewed. The government commission will be able to update the list of affected regions according to changes in energy demands.
Regions such as Dagestan, North Ossetia and Chechnya are among the areas where energy consumption is intense. During the ban, companies and individuals mining cryptocurrencies will be subject to regular inspections.
Legal Status and Future Plans of Cryptocurrency Mining
Russia legalized cryptocurrency mining in July, and this law came into force last month. However, while the government allows cross-border cryptocurrency payments to use energy resources more efficiently, it prohibits the use of these assets as official means of payment in domestic markets.
The implementation of the ban aims to promote energy efficiency and the use of alternative energy sources. Experts state that evaluating how the six-year ban affects energy consumption will be decisive for future energy policies. It is also stated that new regulations regarding mining activities may be introduced after the ban ends.
This decision provides an opportunity to re-evaluate the environmental and economic impacts of cryptocurrency mining activities. In the long term, it is predicted to have a major impact on Russia’s energy policies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
