Russia May Expand Bitcoin Mining Restrictions to Additional Regions

Three more regions in Russia have applied to join others in limiting bitcoin mining activities due to the high energy consumption of these operations. The Ministry of Finance stated that it is still undecided whether these new regions will impose a full mining ban or only restrictions during the heating season.

Russia Attacks Bitcoin Mining Operations Again: More Restrictions Coming

Russia is preparing to impose further restrictions on bitcoin mining activities in some regions. According to official reports, three regions have submitted requests to limit these operations due to energy scarcity and other factors.

“Three regions are referred to, Karelia (its northern part), the Penza Region, and Khakassia (a number of districts),” the Ministry of Finance stated. These regions share several similarities, including their propensity for outages derived from winter storms and the establishment of illegal mining operations affecting already aged infrastructure.

For example, in December, authorities estimated the power consumption from certain households in Penza had increased by 70%, causing frequent outages. This hints at the installation of illegal mining machines in some of the households, with authorities enhancing their grid and line monitoring schemes to combat this situation.

The Ministry of Finance did not specify if these regions were applying for a full ban or, like other regions, would only restrict industry activities during the heating season from November 15 to March 15.

These are the latest regions to seek to reduce the impact of bitcoin mining, a popular industry due to the climatic advantages of these areas. In December, Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, Zaporizhia, and Kherson regions enacted similar bans.

Read more: Russia Enacts Ban on Crypto Mining Operations in 10 Regions, Hints at Expansion

Nevertheless, some critics allege these bans will push miners underground, making it more difficult for authorities to control the activity and curb its energy impact.

While uncomfortable to miners, the measures have started yielding positive results in regions like Siberia. In February, the Ministry of Energy stated that the region’s load decreased by more than 300 MW, avoiding the need to apply restrictions that would harm the general population.

Read more: Russian Bitcoin Mining Ban Yielding Results in Siberia