Russia Approves Law Limiting Crypto Mining to Conserve Energy

• A government commission meeting, presided over by the Russian Deputy Prime Minister, deliberated on such steps.
• Individuals will be required to get an entrepreneur’s license in order to lawfully engage in cryptocurrency mining.

Vladimir Putin, Russia’s president, has signed new legislation limiting cryptocurrency mining in certain areas in an effort to control the country’s energy use. As part of its larger attempts to control the sector and save power during winter peak hours, Russia has imposed certain limits.

Between December 2024 and March 2031, Russia will impose crypto mining limitations in thirteen places. Including the Ukrainian lands that are under Russian occupation. Irkutsk, Zabaikalsky Krai, and portions of the Siberian Republic of Buryatia are the impacted areas.

Additionally, during the heating season in the areas of Dagestan, Ingushetia, North Ossetia-Alania, Chechnya, Kabardino-Balkaria, and Karachay-Cherkessia, yearly emission requirements are to be maintained.

Controlling Energy Consumption

The local report states that the occupied areas of Donetsk and Luhansk, as well as the provinces of Zaporizhzhia and Kherson, would be impacted by the measures. A government commission meeting, presided over by Russian Deputy Prime Minister Alexander Novak, deliberated on such steps. Since the nation’s power usage is expected to increase over the winter season. Energy savings was a topic of discussion at the conference.

The government has established a limit electricity use of 6,000 kWh per month for unregistered cryptocurrency miners. As an additional measure to manage energy consumption. Beyond this threshold, individuals will be required to get an entrepreneur’s license in order to lawfully engage in cryptocurrency mining.

Unregistered miners put additional pressure on the electrical grid, but the administration claims this will assist protect the system. While mining enterprises must comply with reporting and taxation standards, they will not be subject to judicial challenges.

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