Russian authorities have approved a cryptocurrency mining prohibition covering Moscow, the Moscow region, and eight districts in the Kursk region, according to UNN, which cited the Baza Telegram channel. The restriction takes effect August 15, 2026, and remains in force through December 31, 2032.

The measure marks a shift for the capital, moving Moscow from regulated mining access to a full territorial prohibition. It also covers participation in mining pools from restricted locations. A government draft published in June had listed the same geographic areas and end date but proposed a July 1 start, making August 15 the revised commencement. Russia's mining sector grew significantly after China's 2021 cryptocurrency ban displaced operations abroad, with low electricity tariffs making Siberian and other regions attractive to industrial-scale miners.

Electricity Capacity Concerns Drive the Decision

The ban applies year-round across Moscow and the broader Moscow region. Russia's Energy Ministry had previously warned that new mining connections could strain power capacity, with an explanatory note advocating a round-the-clock restriction rather than seasonal limits. The government electricity commission discussed the proposal in May before the ministry released its draft decree in June.

Regional energy data underscores the strain on the capital's grid. Moscow and the Moscow region host 65 data centers with a combined 734 megawatts of capacity. Nineteen of those facilities are located within the Moscow region, accounting for 233 megawatts. While these figures encompass all data centers rather than solely cryptocurrency mining operations, they illustrate the scale of computing demand placed on local networks.

Moscow Region Energy Minister Sergei Voropanov estimated that mining activity consumes approximately one gigawatt across the Moscow power system, with roughly half concentrated in Moscow and the surrounding region. Officials project that total data center capacity in the capital region will reach 3.6 gigawatts by 2032, equivalent to about 17% of the system's maximum load.

The prohibition targets mining operations specifically and does not restrict ordinary cryptocurrency ownership. Under existing Russian regulations, corporate miners and registered entrepreneurs must enter a federal tax register. Individuals may mine without registration only if their monthly electricity consumption stays below 6,000 kilowatt-hours.

Kursk Districts Face Additional Restrictions

The ban extends to eight municipal districts in the Kursk region — Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky, and Khomutovsky — along with the city of Lgov. Several of these districts lie near Russia's border with Ukraine, where energy infrastructure has faced damage and operates under added pressure amid the ongoing conflict. Regional authorities have separately suspended certain utility billing for affected residents, with reimbursement mechanisms for providers covering lost revenue during the transition.

Russia has employed geographic mining restrictions since 2025. Current controls span several North Caucasus republics, occupied Ukrainian territories claimed by Moscow, and parts of Siberia. Some restrictions operate throughout the year, while others apply during peak-demand winter months. In 2026, authorities expanded limits in Buryatia, Transbaikal, and southern Irkutsk. The pattern of curtailment mirrors moves by other governments — including China, Iran, and Kosovo — that have restricted mining to protect power grids or enforce financial controls.

The broader regulatory framework continues to permit registered cryptocurrency mining in non-restricted areas. Russia also allows cryptocurrency use in approved international trade transactions, though domestic payments remain limited. The new ban does not alter those national rules; it removes Moscow and the designated Kursk districts from legal mining access until the end of 2032.

Pending Legislation Could Strengthen Enforcement

Enforcement may intensify under separate legislation now under consideration. Russia's State Duma passed a bill on first reading in May that would criminalize large-scale illegal mining. Proposed penalties include up to five years of imprisonment for organized activity involving especially large damage or especially large income. The bill has not yet been enacted into law and would not automatically apply criminal sentences to all unregistered miners. For context, the proposal would move Russia closer to jurisdictions that treat unlicensed commercial mining as a criminal offense rather than a regulatory violation.