By Russia is preparing to prohibit cryptocurrency mining in Moscow, the surrounding Moscow Region and parts of the Kursk Region until the end of 2032, marking one of the country’s most significant crackdowns yet on energy-intensive digital asset operations. The Russian Energy Ministry has published a draft government resolution that would ban digital currency mining—including participation in mining pools—from July 1, 2026, through December 31, 2032 in the affected territories. The proposal follows a recommendation made in May by the government’s commission on electric power development, which concluded that additional restrictions were needed to protect regional electricity supplies.
If adopted, the measure would apply across Moscow, the Moscow Region and several municipalities in the Kursk Region, including the city of Lgov and multiple surrounding districts. The ministry said the restrictions are necessary because rapidly growing mining activity risks creating year-round electricity shortages by connecting large, power-intensive facilities to regional grids. The explanatory note accompanying the draft warns that existing infrastructure may not be able to accommodate continued expansion without jeopardizing energy security.
Energy Demand Drives New Restrictions
Russia has become one of the world’s leading Bitcoin mining destinations thanks to relatively inexpensive electricity and a cold climate that reduces cooling costs. However, mining’s growing electricity consumption has increasingly brought the industry into conflict with regional power planners. Officials estimate that mining operations currently account for around 1 gigawatt of electricity demand within the Moscow power system. According to regional projections cited by Interfax, data center capacity in Moscow and the surrounding region could expand to approximately 3.6 GW by 2032, equivalent to around 17% of the area’s peak electricity load if left unchecked.
The proposed Moscow ban builds on restrictions already imposed elsewhere in Russia. Full or seasonal prohibitions are currently in place across several regions, including parts of Buryatia, the Transbaikal Territory, the North Caucasus republics and territories in eastern Ukraine controlled by Russia, with many of those measures remaining effective through 2031. The government has generally framed the restrictions as an energy management policy rather than an attempt to prohibit cryptocurrency itself.
Russia Continues to Embrace Crypto While Restricting Mining
The proposal comes shortly after Russia adopted comprehensive legislation establishing a regulated framework for cryptocurrency trading. The new law, due to take effect on September 1, 2026, permits regulated cryptocurrency transactions through licensed intermediaries while continuing to prohibit the use of cryptocurrencies for domestic payments. That contrast reflects Russia’s evolving digital asset strategy. Policymakers increasingly distinguish between cryptocurrency as a financial instrument and cryptocurrency mining as a large-scale industrial consumer of electricity.
By limiting mining in regions facing supply constraints while simultaneously developing a regulated crypto market, the government aims to preserve grid stability without abandoning broader digital asset adoption. The draft decree has not yet received final government approval and remains subject to consultation before becoming law. If enacted in its current form, however, Moscow and its surrounding region would join a growing list of Russian territories where industrial cryptocurrency mining is prohibited until the beginning of the next decade.