Russia tightens data center cryptocurrency mining regulations

Prohibition of Subsidized Power Usage... Mining Industry Inevitably Impacted

Russia is significantly strengthening cryptocurrency mining regulations in data centers. The Russian Digital Development and Communications Department announced today that it will establish a data center registration system and promote legislation to completely ban cryptocurrency mining using subsidized electricity.

The Russian government is preparing for the second reading after modifying the mining bill that passed the first reading in the Duma (lower house) in 2022. The key point of the amendment is that data centers must promise not to engage in cryptocurrency mining to receive preferential electricity rates from the government.

A representative from the Digital Development and Communications Department stated, "With this measure, data centers will have to choose between cryptocurrency mining and preferential electricity" and "Power subsidies will only be given to data centers officially recognized as communication facilities."


Registration for the new system is voluntary, but once registered, companies will be completely prohibited from installing mining equipment, regardless of internet connection. Russia has been providing subsidies for residential and industrial electricity, and this measure is expected to limit cryptocurrency mining companies' subsidy benefits.

This represents a typical example of the Russian government's strengthened regulatory stance on the cryptocurrency industry, and the regulation could significantly impact cryptocurrency mining in Russia, particularly large-scale mining operations using data centers. The bill is set to be implemented immediately upon passing the second reading.

Choi Joo-hoon joohoon@blockstreet.co.kr