Russia Bans Crypto Mining in Moscow Until 2032

Russia is putting the brakes on cryptocurrency mining in its capital city. The government has decided to ban crypto mining in Moscow, the Moscow Region, and parts of the Kursk Region because of worries about electricity supplies.

First, let's clear up some terms. Cryptocurrency mining is the process of using powerful computers to create new digital coins (like Bitcoin) and to verify transactions. These computers run 24/7 and use enormous amounts of electricity — which is exactly why Russia is concerned.

Here are the key facts:

• The ban takes effect on August 15, 2026
• It will stay in place until December 31, 2032
• It was signed into law by Russia's Prime Minister, Mikhail Mishustin, on July 25, 2026
• It updates an earlier mining restriction from December 2024
• It covers eight municipal districts and the city of Lgov in the Kursk Region

Why is Russia doing this? The main reason is power supply. Mining eats up huge amounts of electricity, and officials worry there isn't enough to go around. The Moscow Region's Energy Ministry pointed to rising electricity demand as the problem.

To give you a sense of the scale, officials said that Moscow and the Moscow Region have 65 data centers (large buildings full of computers) connected to the power grid. Together, these use 734 megawatts of power — enough electricity to power hundreds of thousands of homes. Of these, 19 data centers in the Moscow Region alone use 233 megawatts.

In short: Russia is choosing to protect its electricity supply over allowing energy-hungry crypto mining in its most important regions. This is part of a broader pattern where Russia is tightening control over where and when crypto can be mined.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/russia-expands-crypto-mining-ban-moscow-2032?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound