Several officials in Russia have agreed that block reward mining is doing little to benefit the economy of Moscow or the welfare of its citizens, prompting them to back a proposal that could see the activity restricted in the capital until at least 2032.
Since 2022, Russia has been proposing to limit block reward mining activities in the country over fears that they pose threats to financial stability, monetary policy sovereignty, and the well-being of its citizens.
By April 2026, 13 regions across Russia had enforced a mining ban, affecting an estimated 50,000 miners.
But these restrictions only cover a portion of Russia, as block reward mining remains active there. Numerous reports previously pointed out that Russia struggles to enforce a nationwide ban on crypto use, as it helps the government circumvent international sanctions.
However, this could all change as lawmakers advanced a proposed regulation that criminalizes unregistered miners while a state-backed power industry commission voiced its support for a mining ban—this time in the capital Moscow, the primary economic hub of Russia, and its nearby regions.
Restricting block reward mining in Moscow and its neighboring regions gained solid support following a report from the Energy Ministry stating that the earlier ban in parts of Siberia, the North Caucasus, and occupied Ukrainian territories has produced positive results.
Russia has been a hotbed for crypto miners due to its cheap electricity, but supporting such an innovation comes with risks. As miners flock to the country, its power grid took a toll, with officials reporting energy deficits, forcing the government to legalize a mining ban in selected regions in August 2024, according to a crypto.news report.
But block reward mining not only strained Russia’s power grid, it also contributed little benefits to the local economy, said Energy Minister Sergey Voropanov.
Kursk Oblast Governor Alexander Khinshtein echoed this sentiment, saying that block reward mining only worsened Russia’s power supply, which has been deteriorating since the war in Ukraine erupted.
He noted that enacting a ban would help free up reserve capacity and save electricity for residential and industrial customers, especially at a time when geopolitics is becoming more chaotic.
Across Moscow, the Energy Ministry identified at least 65 data processing centers connected to the region’s power grid, with a total capacity of 734 megawatts.
Aside from the regions of Moscow Oblast and Kursk Oblast, officials are also looking to expand the mining ban across 19 regions within Moscow’s power distribution zone.
Meanwhile, as state officials consider broader restrictions on mining activities, the State Duma has passed a bill on first reading that would criminalize illegal mining.
Under the proposed bill, miners operating without proper registration or found to be using stolen electricity would be subject to fines of up to 2.5 million rubles ($35,000), forced labor, and up to 5 years’ imprisonment.
Details released by state-owned outlet RIA Novosti and financial news agency Prime, as cited by crypto.news, also noted that officials will have the authority to seize properties tied to illegal mining.
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