Russia’s Ministry of Energy is considering offering strictly regulated now Bitcoin Mining Industry incentives moving north of the country.
The move continues to ban Bitcoin mining in 10 regions (mainly in the south) this January.
The ban is scheduled to remain until March 15, 2031, with the government exploring plans to expand restrictions on new areas.
Russia has historically been one of the world’s top Bitcoin mining hubs, with relatively cold weather and cheap energy supplies. However, since the Ukrainian War began, energy shortages have been increasingly struggling, causing local blackouts and urged governments to regulate the industry and relieve pressure.
Russian Deputy Energy Minister Yevgeny Grubchak proposed in an interview with the provincial news outlet Tas Bitcoin miners could potentially reuse the “common capabilities” of the unused power grid in northern Russia, which was previously used for oil production.
“The fields are depleted, but electricity centres are preserved and can be used for long term use by miners if they benefit the local economy and energy system,” he said.
Areas highlighted for expansion include “northwest, parts of the northwest and parts of the Volga region.”
The Minister did not outline the corporate plan in terms of next steps, but only that the agency had been discussing the relocation with the miners.
Is the ban on mining in Russia working?
The initiative to ban mining in the southern region has achieved some success so far in terms of reducing stress on the electrical grid. The government claims the ban has saved more than 300 MW to date.
That’s not what these say Bitcoin Mining restrictions have proven to be particularly popular in Russia. Some analysts say the move to ban mining may have missed opportunities for economic development and investment into poorer regions.
Other Russians emphasize that mining bans have been misrepresented in Western media. Dennis Lucinovic, a partner in the cryptocurrency mining group, argued that many large corporate miners are actually allowed to operate in these areas. He said Mining Pod The prohibition is only enforced in the case of unregulated miners or individuals.