Russia has taken steps to limit cryptocurrency mining in specific regions to address potential energy shortages during the winter months.

The government commission overseeing the country’s energy management announced a seasonal ban on mining activities in several Siberian regions.

Reason Behind The Seasonal Bans?

According to the report, the seasonal bans in multiple Siberian regions in Russia are because these areas are known for their affordable electricity due to their proximity to hydropower plants, which have made them hubs for mining operations.

The seasonal strain on the energy grid, coupled with Siberia’s harsh winters, has led authorities to prioritize domestic energy needs over industrial mining activities.

The restriction also extends to areas of Ukraine that Russia has declared “annexed.” Many of these regions have suffered significant damage to their energy infrastructure since 2022, causing frequent power outages.

With limited resources to rebuild the grid, authorities have deemed it necessary to curb energy-intensive activities like cryptocurrency mining.

These measures come as Russia continues to adjust several of its regulation rules on cryptocurrency since Russian President Vladimir Putin enacted a law permitting the experimental use of cryptocurrencies for international payments and foreign exchange transactions in July.

Notably, the Siberian regions near Lake Baikal are particularly affected by the ban, as they have become popular hubs for crypto mining due to low energy costs. Reports have it that hydropower plants in these areas have traditionally provided affordable electri

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Author: Samuel Edyme