What happened?
Russia is considering a year-round ban on all crypto mining activities in the southern part of the Irkutsk region starting April 1, which could last until mid-2031. This decision follows an existing winter ban aimed at reducing strain on the power grid, but top officials believe a total ban might be necessary to ease pressure further. Governor Igor Kobzev has urged the Kremlin to repurpose the energy used by miners for socio-economic projects important to the region.
Who does this affect?
The proposed crypto mining ban primarily affects industrial miners in the southern part of the Irkutsk region. If enforced, these miners, who collectively consume around 650 MW of power, may face significant operational challenges, leading many to consider relocating. The ban could impact both legal and quasi-legal crypto miners who contribute to the region’s growing energy consumption issues.
Why does this matter?
A year-round mining ban in southern Irkutsk could significantly impact the crypto market by disrupting one of Russia’s largest Bitcoin mining hubs. The reduced capacity and potential relocation of mining operations might influence global Bitcoin supply and prices. Additionally, this decision highlights the ongoing tension between energy demands and the growing crypto industry, prompting other regions to reconsider their stance on crypto mining.