As of August 15, mining is prohibited by the government in Moscow, the Moscow region, and part of the Kursk region. The restriction will be in effect for the next six years — until December 31, 2032.
The issue of limiting mining was raised by regional authorities. The reason is the likelihood of an electricity deficit due to the connection of energy-intensive equipment, as has been the case in other territories.
Cryptocurrency mining was legalized in Russia in November 2024, and already from 2025, mining has been banned in a number of regions. In total, restrictions are currently in effect in 16 federal subjects.
Easements and Tightenings
The initial ban included all forms of mining, but in March 2025 an exception was made for those who mine cryptocurrency by generating their own electricity. For example, using gas piston units, diesel generators, or other autonomous power stations without connecting to the unified national power grid.
Major industry participants began reorienting towards their own gas generation several years ago. Placing infrastructure directly at gas fields became a way to reduce dependence on grid restrictions.
In 2025, the trend of combining mining with computational infrastructure for AI intensified. However, the situation here was complicated by the fact that the authorities classified classic data centers (IDCs) as communication facilities and granted them a number of benefits on the condition that mining is prohibited within them.
"Moscow is a Controversial Site for Mining"
All the emerging restrictions have forced miners to change regions and sites. And the mining ban that has come into force in the Moscow region and part of the Kursk region is once again changing the rules for placing mining infrastructure within Russia, says Alexander Peresichan, General Director of Tekhnobit company.
The effect on the global Bitcoin network will be minimal: the Russian capacities operating in these regions are not large enough to noticeably affect the overall hash rate. But for the Russian market, this is an important signal: mining is finally ceasing to be considered an activity that can be carried out anywhere, the expert warned.
The main consequence is that the industry will shift even more strongly to areas with an electricity surplus, clear connection conditions, and a willingness of the regions to work with such loads, the specialist believes. According to him, the Moscow region was already a controversial site for mining: there is high competition for electricity from data centers, industry, residential development, and urban infrastructure.
"Mining consumes a lot of power but does not create as many jobs and related services as classic data centers. Therefore, for the authorities, the choice in favor of data centers looks more rational," said Peresichan.
Regarding the Kursk region, the ban there is related not only to the economics of the power system but also to the stability of infrastructure in border territories. The expert explained that in such conditions, energy-intensive loads that are not critically important for the region will be the first to face restrictions.
Market Segmentation
For large legal players, this is not a catastrophe but a factor for restructuring infrastructure: they will move equipment, look for sites with their own generation or long-term electricity supply contracts, believes Peresichan. He pointed out that it will be more difficult for small and semi-legal miners who operated in urban networks, on industrial sites without a transparent connection scheme, or through mining hotels. For them, the ban means increased costs and the risk of moving into the gray zone, the expert warned.
"In the long term, this decision accelerates market segmentation. Mining in Russia will either be industrial, with clear energy supply, registration, and placement in suitable regions, or will be pushed out of the legal framework. For the industry, this is a painful but logical stage: regulation now occurs not only through taxes and registers but also through access to energy capacities," concluded Peresichan.
Overall, industry participants had previously noted that bringing mining into the legal framework had the opposite of the desired effect — if before legalization there were a number of large mining companies in the country, then after 2024 some of them closed due to financial problems, while others continue to operate for themselves without providing services to third parties.
At the same time, Russian miners are being pressured not only by legislative restrictions but also by factors affecting the industry worldwide. These include the Bitcoin price, which is below the global average cost of its production, rising electricity prices, and the approaching 2028 halving. Due to the unprofitability of mining, some participants are forced to switch off their equipment.
