Facing energy concerns, Russia has imposed a six-year ban on cryptocurrency mining in ten regions. The move highlights the growing global scrutiny of the crypto industry's energy demands.
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| Russia has banned cryptocurrency mining in ten regions for six years due to concerns over high energy consumption. The ban aims to address potential energy shortages and follows similar measures taken by other countries. Image: Symbolic |
Kremlin, Russia - December 25, 2024:
The Russian government has issued a six-year ban on cryptocurrency mining in ten regions, citing concerns over the industry's high energy consumption. The ban, effective from January 1, 2025, until March 15, 2031, aims to address potential energy shortages, particularly during peak demand periods.
The decision comes after Russia legalized cryptocurrency mining in November 2024, requiring miners to register with the Ministry of Digital Development and adhere to energy consumption limits. However, the government has expressed concerns about the industry's significant energy demands, which can strain the national grid.
This ban follows similar measures taken by other countries, including Kosovo, Angola, and several European nations, who have either banned or heavily regulated crypto mining due to energy concerns.
While Russia has banned the use of cryptocurrencies as legal tender, it allows cross-border crypto payments, a move largely seen as an attempt to circumvent international sanctions imposed following the invasion of Ukraine.
The government has stated that the ban may be lifted or adjusted in certain regions based on future energy demand assessments.