While many countries are accelerating the development of infrastructure for the cryptocurrency mining industry, Russia has chosen to relocate Bitcoin mining from the South, redirecting it to the northern regions – once the center of old oil and gas production. This is the latest move after the Bitcoin mining ban in 10 southern regions took effect earlier this year, with a deadline extending to March 2031.



Why did Russia ban Bitcoin mining in the South?

Regions such as Dagestan, Chechnya, Donetsk, or Lugansk have been banned from Bitcoin mining by the government, primarily due to the pressure it places on the national power grid – which has been overloaded since the conflict with Ukraine began. According to reports from the government #Nga , the mining ban has saved more than 300 MW, enough to power a small city.


However, this ban has also sparked controversy within Russia. Some analysts argue that it could squander economic development opportunities in impoverished areas – where mining coins used to be a significant source of income.



New plan: “Reuse” old oil and gas infrastructure to serve Bitcoin mining

In this context, Russian Deputy Energy Minister – Mr. Yevgeny Grabchak – revealed that the government is considering encouraging Bitcoin mining companies to move to the northern regions, where temperatures are low, population density is low, and the power system previously served the oil and gas industry.



“The oil resources have run out, but the power centers remain. We can reuse these places for mining activities, as long as it benefits the economy and the local energy system,” – Mr. Grabchak told TASS news agency.



The regions being considered include the entire North, part of the Northwest, and the Volga region – where there is energy potential and less impact from conflicts or infrastructure overload.



Is the ban really effective?

Although the government claims to have successfully saved electricity due to the ban, many in the industry argue that enforcement has not been comprehensive. Mr. Denis Rusinovich – a partner at Cryptocurrency Mining Group – stated that most large-scale mining companies continue to operate in the banned regions, and that the ban primarily targets individuals or small unlicensed entities.



Perspective for the crypto market

Russia's move reflects a strategic adjustment in its approach to cryptocurrency mining, rather than a complete elimination. Reusing old oil and gas infrastructure not only minimizes waste but also indicates that the Russian government wants to maintain its position in the global Bitcoin mining industry, which once placed them among the top mining centers worldwide due to cheap electricity and a cold climate.



⚠️ Risk Warning: Investing in and mining cryptocurrencies always carries high risks, especially in a rapidly changing legal and geopolitical context. The content of this article is not investment advice. #anhbacong