Michaela
Moscow has enforced a complete ban on crypto mining in several areas of Irkutsk Oblast, a region renowned for its cheap energy and once referred to as the “mining capital of Russia.” The locality had attracted a growing number of miners in recent years, drawn by the region’s low electricity rates.
Initially implemented to limit power consumption during the winter, the crypto mining ban will now be enforced year-round through 2031. This shift comes after federal authorities responded to local requests aimed at alleviating pressure on the region’s electrical grid.
Russian Prime Minister Mikhail Mishustin officially signed the new restrictions, which took effect on April 7 and will last until March 15, 2031. The ban affects nearly 20 districts in the southern part of Irkutsk Oblast, including major cities like Irkutsk, Zima, Sayansk, and several others such as Svirsk, Tulun, Usolye-Sibirskoye, and Cheremkhovo.
Igor Kobzev, the governor of Irkutsk Oblast, shared the announcement of the new restrictions on social media. “We have repeatedly addressed the Government of the Russian Federation with this initiative, and they have heard us,” Kobzev stated in a post on the popular Russian social media platform Vkontakte.
Kobzev went on to explain that the Irkutsk region is grappling with significant socio-economic issues caused by the heavy strain mining activities have placed on the local power grid. He emphasized that the decision to request the ban was driven by the “excessively high load” mining imposes on the region’s energy infrastructure.
Additionally, Kobzev noted that the surge in electricity demand from crypto mining operations has led to regular power outages, while also restricting the capacity needed to supply other users on the grid. “In particular, we are seeing an energy deficit in the south of Irkutsk,” he stated and added that the temporary ban, which ran from January to March, successfully freed up 320 MW of generation capacity.
The governor also revealed that the temporary ban helped the region save approximately 146 billion rubles ($1.7 billion), which can now be invested in developing new power generation infrastructure. He called the federal government’s decision a crucial step in addressing the region’s ongoing energy shortages.
As of 2025, cryptocurrency mining in Russia is facing increasing scrutiny and regulatory changes due to growing concerns about its impact on the country’s energy resources. The Russian government is stepping up efforts to regulate mining operations, cracking down on illegal activities that often strain local power grids.
These actions have led to some surprising and concerning discoveries—such as the recent uncovering of an illicit mining farm hidden in an unlikely place.
In March, Russian authorities discovered an illicit cryptocurrency mining operation concealed within a three-story orphanage in the Siberian village of Kazaqiye, located in the Irkutsk region.
The local authorities seized 96 mining rigs in the Bokhansky District, uncovering a scheme allegedly orchestrated by an unnamed non-profit organization. The mining equipment had been installed within the orphanage, which, despite still being registered as an educational facility, is currently not operational.
Read More
- Govt Tightens Grip on Seized Crypto as Russia Plans Sale, US Audits
- Russian Economist Warns Bitcoin Reserve is a Risky Bet
- Russia Central Bank Governor Renews Push for Stricter Crypto Ban
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
