Russia officially decides blanket ban on crypto mining operations
A report by Russian state media confirmed that the Russian government is going to impose a blanket ban on all kinds of digital assets mining operations in the Russian Federation.
Russia is a very big jurisdiction for the crypto sector. A very big fraction of the Russian population invests in cryptocurrencies. Currently, the Bitcoin & Crypto sector is evolving under precise rules & laws introduced by the Russian government authorities between 2021 and 2024.
On 24 Dec 2024, TASS, a Russian state-backed news media agency, reported that the cabinet ministers of Russia decided to impose a statewide blanket ban on cryptocurrencies in step-by-step phases.
The planned crypto mining ban will first take place in 10 particular regions in Russia. These regions are Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, and in the Zaporizhia and Kherson regions.
In addition, temporary crypto mining ban measures will also be visible in some areas of the Irkutsk Region, Buryatia and the Zabaykalsky Krai, during peak energy consumption.
The resolution will come into effect from January 1, 2025, & last until March 15, 2031.
Cabinet ministers clarified that the region list for banning Cryptocurrency mining may go through some changes, on behalf of decisions of the government commission on problems related to electric power development.
In short, we can say that the Russian government is going to ban crypto assets mining operations in some particular regions where power outages are a very common problem.
Crypto Mining Legality in the Russian Federation
In the jurisdiction of Russia, crypto mining is highly beneficial because here, individuals & companies can easily get low-tariff electricity, as Russia is abundant in petroleum.
In the past, Russian President Vladimir Putin praised the cold environment & low-cost electricity as a favourable ecosystem for Crypto mining operations.
In Nov of this year, the Federal Tax Service (FTS) launched a service and invited crypto miners to register with FTS to get legal approval for crypto mining operations.
Read also: Microstrategy buys 5,262 $BTC at a $106k+ price level, but Bitcoin price remains calm!
