Russia has expanded its cryptocurrency mining ban to Moscow, the surrounding Moscow Region and selected areas of Kursk Region, citing mounting pressure on electricity supplies. The restrictions will begin on 15 August 2026 and remain in force until 31 December 2032.
Capital added to restricted zone
The new measures were introduced through Government Resolution No. 936, signed by Prime Minister Mikhail Mishustin on 25 July and officially published on 31 July.
The resolution amends an earlier order from December 2024 covering territories where cryptocurrency mining is prohibited. The ban applies both to the direct mining of digital currencies and participation in mining pools from within the affected areas.
Alongside Moscow and the entire Moscow Region, the restrictions cover eight municipal districts in Kursk Region: Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky and Khomutovsky. The city of Lgov is also included.
Several of the Kursk districts are close to the Ukrainian border, where energy infrastructure has faced additional pressure and security risks during the continuing war.
Electricity demand drives decision
Cryptocurrency mining requires large amounts of electricity to operate specialised computers that validate transactions and compete to generate new digital coins.
Russian energy authorities have argued that permitting additional mining facilities in and around Moscow could create shortages in available generating and grid capacity.
The Moscow Region reportedly has 65 data centres connected to the electricity network, with a combined capacity of approximately 734 megawatts. Officials have estimated that cryptocurrency mining across Moscow and the surrounding region may already consume as much as one gigawatt.
Demand is expected to increase as conventional data centres, cloud computing, artificial intelligence services and other digital infrastructure expand. These sectors must compete for electricity and grid connections with miners, creating difficult choices for authorities responsible for energy security.
Officials have also questioned whether the economic contribution from mining operations is sufficient to justify their heavy electricity use, particularly in regions where future capacity may become constrained.
Russia regulates rather than rejects crypto
The decision does not represent a nationwide ban on cryptocurrency mining. Russia legalised and regulated the activity in 2024, requiring larger operators to register with the Federal Tax Service and introducing a system for taxing mining income.
Cryptocurrencies have also become increasingly important for some Russian companies seeking to make international payments after Western sanctions restricted access to conventional banking services.
However, the Government has simultaneously imposed regional restrictions where mining is considered a threat to electricity supplies.
Long-term bans already cover several energy-deficient regions, while seasonal restrictions operate in parts of Buryatia, Zabaykalsky Krai and Irkutsk Region during periods of high winter demand. Other prohibitions apply in parts of the North Caucasus and Russian-occupied Ukrainian territories.
Industry may move elsewhere
Mining companies affected by the Moscow ban may attempt to relocate equipment to regions offering cheaper electricity and fewer restrictions. Siberian areas with abundant hydroelectric power have traditionally attracted a large share of Russia’s mining industry.
The immediate effect on the global Bitcoin network remains uncertain because Moscow is not Russia’s only major mining centre. Nevertheless, restricting activity in the capital and its surrounding region sends a powerful signal that access to electricity will take priority over further mining expansion.
Russia’s policy now combines legal recognition, taxation and international use of cryptocurrency with increasingly strict controls over where digital coins may be produced.
For miners, the message is clear: cryptocurrency remains permitted where it serves the state’s economic interests, but not where its electricity demands are judged to threaten the wider economy.
Newshub Editorial in Europe – 2 August 2026
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