Russia to ban Bitcoin mining in key regions due to electricity deficit

Cryptocurrency mining will soon be banned in certain regions of Russia due to power outages, according to Deputy Energy Minister Evgeny Grabchak.

According to the news of Russia’s state news agency TASS, based on Deputy Energy Minister Evgeny Grabchak, Russia will soon ban Bitcoin (BTC) mining in many regions due to critical electricity shortage.

Speaking at a technology forum, he said regions such as the Far East, southwestern Siberia and the South are currently experiencing significant energy deficits, making it impossible to provide large power capacities until at least 2030.

The statement comes after Vladimir Putin recently signed a law regulating the circulation of cryptocurrency, which will come into force on November 1. The legislation gives the Russian government the authority to ban cryptocurrency mining in certain regions or regions and establishes protocols for enforcing such restrictions. The ban may also include participation in mining pools, which are servers used to distribute cryptocurrency mining payload.

Additionally, the newly signed law bans advertising related to cryptocurrency and services that use it. In August, Yandex, Russia’s largest search engine, updated its advertising policies to ban ads for crypto services within the country.

According to the statement made by Yandex, the ban specifically prohibits ads for crypto exchanges, blockchain services, smart contracts, crypto mining and initial coin offerings, as well as ads that promote earnings from these activities. The policy also restricts advertising of services that check crypto wallets and transactions for money laundering activities.