The Russian government has officially banned all crypto mining activities in the city of Moscow, its surrounding regions, and parts of the Kursk area, with a long-term restriction lasting until December 31, 2032.
The regulation was enacted through government decree No. 936. This decree was signed on July 25 and announced to the public on July 31, 2026. The ban does not only target the physical presence of mining machines, but also prohibits miners’ participation in crypto mining pool networks.
The impact of this policy hits a major market share. In the first quarter of 2026, Russia contributed approximately 175 exahashes per second of computing power to the Bitcoin network. This figure represents 16.4% of the global hashrate, placing Russia second in the world, just behind the United States.
Compromising to Keep the Lights On
The decision to shut down mining rigs in the capital is driven by basic infrastructure concerns. The Russian Ministry of Energy described the ban as a mandatory measure to mitigate the risk of electricity supply deficits.
Crypto mining operations currently consume a load of around 1 gigawatt from the Moscow region’s electrical system. If left unchecked, the data center capacity in the area is projected to swell to 3.6 gigawatts. This figure is equivalent to 17% of the estimated peak load for the Moscow region by 2032 - a scenario that would strain local energy authorities.
Unplugging miners is not a new move. Previously, the Russian government had already imposed restrictions on crypto mining operations in 10 other regions until March 2031, citing similar surges in power demand.
Although Russia only legalized registered crypto mining practices in 2024, they have not hesitated to take decisive action against regions vulnerable to energy crises. The southern area of Irkutsk, along with most of Buryatia and the Zabaykalsky Krai, had already faced operational bans to maintain the stability of the public power grid.
Machines May Shut Down, but Transactions Must Flow
Despite the tightening squeeze on domestic miners, Russia is not abandoning crypto assets. Since a series of Western sanctions severed them from the international financial system, many Russian companies have been using mined Bitcoin to facilitate cross-border payments.
This alternative payment mechanism is backed by the state. A new law passed in July 2026 includes specific exemptions ensuring that crypto can still be used to settle foreign trade transactions.
The Russian mining industry has a long track record of facing restrictions. Back in 2022, the US Treasury Department directly intervened, imposing sanctions on BitRiver, one of Russia’s crypto data center operators, along with 10 of its subsidiaries.
Now, the suspension of operations comes from their own government ministries. As power to the machines in Moscow is cut, miners are forced to seek new locations to prevent international payment circulation from grinding to a halt.
As reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
