Russia's decision to ban crypto mining in Moscow, the Moscow Region, and parts of Kursk through 2032 marks a significant regulatory shift for the world's second-largest Bitcoin mining jurisdiction. The Energy Ministry's justification centers on preventing power-capacity shortages, as mining currently consumes roughly 1 gigawatt in the Moscow power system and regional data-center capacity could reach 3.6 GW by 2032. This creates a notable tension with Russia's earlier legal changes that allowed domestically mined bitcoin to be used in international payments to counter Western sanctions. The decree's impact on Russia's overall hashrate remains unclear since the capacity located in restricted regions is not specified. Key developments to watch include whether mining operations relocate to other Russian regions, how the ban affects Russia's 16.4% share of global Bitcoin hashrate, and whether the government introduces further regional restrictions or exemptions as power demand evolves.
The post Why the world’s second-largest Bitcoin mining power is shutting down rigs in its capital city appeared on BitcoinEthereumNews.com.
Crypto mining was banned in Moscow, the surrounding Moscow Region and parts of Kursk, with the restrictions set to run through Dec. 31, 2032. The measure, established under government decree No. 936, also prohibits participation in crypto mining pools. The decree was signed on July 25 and published on July 31, local media reports. Russia as a whole accounted for an estimated 175 exahashes per second, or 16.4% of Bitcoin’s global computing power, in the first quarter, according to Luxor’s Hashrate Index. That placed it second behind the U.S., although it’s unclear what capacity was located in the newly restricted region. The country’s Energy Ministry said a year-round restriction was needed to reduce the risk of power-capacity shortages as energy-intensive mining facilities connect to regional grids. Mining currently consumes roughly 1 gigawatt in the Moscow power system, while the region’s data-center capacity could reach 3.6 GW, or 17% of peak demand, by 2032, Interfax reported after the decree was first signed. Mining is also linked to the country’s Western sanctions. Russian companies had been using domestically mined bitcoin in international payments after legal changes designed to counter Western restrictions, Finance Minister Anton Siluanov said in December 2024. Source: https://www.coindesk.com/policy/2026/08/15/why-the-world-s-second-largest-bitcoin-mining-power-is-shutting-down-rigs-in-its-capital-city
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