Vladimir Putin explained why mining was banned in Russia

Russian President Vladimir Putin explained the government's decision to ban cryptocurrency mining at the government's discretion in any region of the country. The decision is due to the growing shortage of electricity, Putin said.

According to him, governors have started to complain that they do not have enough energy capacity to develop infrastructure projects and industry.

“We were recently happy that we had a surplus of electricity in some regions. They started actively mining there, and a capacity deficit arose. We were forced to make certain decisions in the mining sphere,” Putin explained.

The law on cryptocurrency mining was adopted in 2024. According to its provisions, legal entities and entrepreneurs wishing to engage in mining must be included in the register of the Federal Tax Service (FTS).

Russians who are not registered as individual entrepreneurs can mine digital currency without being included in the register, if they do not exceed the government-set energy consumption limits of 6,000 kWh per month. According to the new law, all miners are required to provide the Federal Tax Service with information about the digital currency they have mined.

Since January 1, 2025, cryptocurrency mining has been banned in ten regions of Russia. In Buryatia and Transbaikalia, mining is banned during peak periods of energy consumption. In the south of the Irkutsk region, a partial ban was initially introduced, but since April 7, it has become permanent.

Earlier, the Russian Ministry of Energy, the Federal Tax Service and the Ministry of Digital Development, Communications and Mass Media compiled a register of cryptocurrency mining equipment. It should help detect and identify miners.

Источник: cryptocurrency.tech