Russia’s Bitcoin mining industry witnessed substantial expansion in 2024, with mining farms increasing by 7% to 136,600 nationwide, according to a report by the Russian newspaper Kommersant.
Kommersant, citing data from MTS EnergyTool, stated that the country’s total mining capacity exceeded 11 GW by January 2025. The geographical distribution of mining operations shows Irkutsk leading with over 10% of the country’s mining farms, followed by Moscow at 9% and the Moscow region at 8%. Irkutsk’s prominence was attributed to its abundant and affordable hydroelectric power.
Despite this rapid expansion, legal crypto miners in Russia reportedly utilize only 3 GW of the country’s total 11 GW mining capacity. The government has made efforts to formally regulate the industry and integrate underground mining operations.In early August 2024, President Vladimir Putin signed legislation officially legalizing Bitcoin and digital asset mining. Under the new framework, citizens are permitted to mine Bitcoin as long as they comply with the government’s electricity cap.
However, unregistered miners continue to draw substantial amounts of electricity, escalating energy concerns. As a result, this growth has prompted regulatory crackdowns on illegal mining activities that place excessive strain on local power grids.
Local power grid operator Rosseti reported losses exceeding 1.3 billion rubles in 2024 due to unauthorized crypto mining, where miners illegally tapped into electricity. The North Caucasus region was the hardest hit, with Rosseti Severny Kavkaz reporting damages exceeding 600 million rubles. In Novosibirsk, losses reached 400 million rubles, while Rosseti Center and Privolzhye recorded losses of around 120 million rubles.
The Russian government recently implemented a crypto mining ban in ten regions, effective January 2025 through March 2031. The ban affects southern regions, including Dagestan and North Ossetia, as well as Donetsk and Lugansk. Siberian regions like Irkutsk and Buryatia will face seasonal restrictions during winter energy peaks.
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