Russia has banned Bitcoin and cryptocurrency mining in eight cities in the Irkutsk Oblast, a measure aimed at easing pressure on the region's electricity grid. The restrictions, signed by Prime Minister Mikhail Mishustin, took effect on April 7, 2025, and will run until March 15, 2031.
The decision affects nearly 20 districts in the south of this area known for its cheap energy , which has attracted numerous Bitcoin miners in the past . Among the affected cities are Irkutsk, Zima, Sayansk, Svirsk, Tulun, Usolye-Sibirskoye, and Cheremkhovo.
Federal authorities responded to local requests to reduce the energy burden, following years of rising electricity demand driven by these activities.
Irkutsk Governor Igor Kobzev announced the measure on the Vkontakte social network, stressing that the Russian government had responded to the region's repeated requests. According to Kobzev, mining has caused socioeconomic problems by overloading the electrical infrastructure, especially in the south of the oblast.
High demand for electricity led to regular outages and limited supply for other users. During a temporary shutdown between January and March of this year, the region released 320 MW of capacity, demonstrating the impact of these operations.
This relief saved 146 billion rubles, equivalent to $1.7 billion, funds that will now be allocated to improving power generation.
Cryptocurrency mining in Irkutsk has boomed in recent years due to low electricity rates, leading some to dub it the "mining capital of Russia." However, this activity has strained an already fragile energy system.
The Irkutsk measure reflects a national trend toward stricter controls on cryptocurrencies. Source: paliparan.
Kobzev explained that the region faces a significant deficit in the south, where infrastructure fails to meet current needs. The ban, initially seasonal for the winter months, will now apply year-round until 2031. The governor emphasized that this federal decision marks a key step toward addressing the energy shortage and stabilizing supply in the oblast.
The measure in Irkutsk reflects a national trend toward stricter control over cryptocurrencies. In other regions, such as the occupied areas of Ukraine, Russia has also faced challenges with digital mining. There, the activities have complicated energy distribution in territories under military tension.
In Irkutsk, the focus is on economics and logistics, but the objective is similar: protecting energy resources. Russian authorities are seeking to balance technological development with the sustainability of their power grids, a dilemma that is exacerbated in areas of high mining activity.
The six-year ban in Irkutsk could redirect miners to other regions or countries with fewer restrictions, although international sanctions and domestic regulations limit the options.
In any case, the Irkutsk region, with its cold climate and access to hydroelectric power, will remain a focus of interest for miners, despite the restrictions. While the ban marks a significant change in an area that was economically dependent on this activity, local and federal authorities are expected to work in the coming years to monitor the impact of the measure. All this while residents await improvements in the electricity supply.
