Russia is currently not facing a power shortage and has no plans to impose further restrictions on cryptocurrency mining, officials have announced.
The vast, energy-rich countries, the main mining destination, have restricted or completely banned the minting of digital coins in many regions experiencing electricity deficits.
The Russian government will stop expanding mining bans
The Russian Energy Ministry believes there is no basis for introducing more bans on Crypto Mining.
Maximov said the federal government has not received new proposals from local governments for such measures, but said the country’s energy system is currently dealing with the load.
Also, the high-ranking Minergo representative explained as it is being cited by the major business news outlet RBC in Russia.
“We had no such requests from the governor. Everything is fine. If there is no shortage, there is no basis. Our energy system is generally working.”
His statement is positive news for Russian mining companies and has been plagued by the threat of having to move around the country looking for places where their presence is undesirable.
Russian crypto mining has grown especially since it was recognized as an industrial activity and was legalized last year.
However, miners were concentrated in certain areas with low power rates, causing problems with energy supply for other consumers.
This led local officials to seek Moscow’s approval for a partial or complete ban on mining operations. The initial seasonal restrictions imposed were sometimes upgraded to an annual ban.
Mining restrictions remain in multiple regions
Earlier this year, mining in some areas facing energy shortages was banned until the spring of 2031. These include the Russian Republic of the North Caucasus and the occupied territories of the existence of Donetsk, Luhansk, Zapolizia, and Cologne.
The restrictions on the Republic of Belyatia and Zabaykalsky Krai are only effective during cold winters when heating requires a lot of energy.
A similar regime in the southern part of Irkutsk Oblast became permanent at the request of Siberian Governor Oblast.
The governments of the Republic of Briyatia, Hacasia, Karelia, Zabaikalsky Krai and Penza Oblast sought the same.
In June, the Federal Government Commission refused to ban mining activities in Hacasia. This cited a lack of adequate forecasts for expected power failures and a decline in distribution and tax revenues.
Karelia and Penza retracted their requests at a meeting in Moscow, but decisions regarding the situation of Briyatia and Zabaikalsky Krai have been postponed.
The Department of Energy Wants to Alternative Solutions
Deputy Energy Minister Yevgeny Grabchak said the sector supports a more targeted approach that will help to avoid a ban on cryptocurrency mining in some areas.
The ministry expects certain amendments to existing mining regulations will be adopted by the end of the year, providing an alternative solution to current restrictions.
In July, Russian Deputy Prime Minister Alexander Novak directed the Ministry of Energy to finalize a proposal to create a new category of electricity consumers of less important to crypto miners.
This allows Russian authorities to cut Bitcoin farms from the power grid during peak consumption hours.
While recognizing Russia’s competitive advantages in the field of digital currency mining, Russian President Vladimir Putin justified the restrictions introduced at the July Economic Forum, saying at the July Economic Forum.
“We were pleased that there was an surplus of electricity in some areas. But they had to start mining there and make certain decisions.”
His aide, Nikolai Patlshev, also noted the issue, highlighting the electricity deficit registered in the Federal District of Siberia, which reached 1.2 Golden Week.