Russia Bans Bitcoin Mining in Moscow Through 2032 as Grid Strains

Russia, the world's second-largest Bitcoin mining country, has banned crypto mining in Moscow, the surrounding Moscow Region, and parts of Kursk, with the restrictions set to run through December 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, according to local media reports.

Second-Largest Hashrate Nation

Russia accounted for an estimated 175 exahashes per second — 16.4% of Bitcoin's global computing power — in the first quarter, according to Luxor's Hashrate Index. That placed it second behind the United States, although it is unclear how much capacity was located in the newly restricted region.

The country's Energy Ministry said a year-round restriction was necessary 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 — 17% of peak demand — by 2032, Interfax reported.

Sanctions Context

The restrictions come amid Russia's broader entanglement of crypto with sanctions policy. Russian companies have used domestically mined Bitcoin in international payments after legal changes designed to counter Western restrictions, Finance Minister Anton Siluanov said in December 2024.

Legislation passed by Russia's parliament in July maintained the ban on domestic crypto payments but preserved exceptions for foreign-trade settlements and transactions involving mined cryptocurrency — keeping the mechanism available as sanctions restrict conventional payment channels. The U.S. Treasury sanctioned Russian mining operator BitRiver in 2022, citing its role in monetizing the country's energy resources.

Russia legalized registered crypto mining in 2024, before banning the activity in 10 regions through March 2031, citing electricity demand. Year-round restrictions were later extended to southern Irkutsk, Buryatia, and Zabaykalsky Krai.