Cryptocurrency mining in several Russian regions will be temporarily restricted from August 15, 2026, to December 31, 2032. The ban will affect not only the placement and operation of mining infrastructure but also participation in mining pools. The decree was signed by Prime Minister Mikhail Mishustin.
Which Territories Are Covered by the Ban
The updated list includes Moscow, the Moscow Region, and several municipalities in the Kursk Region. From August 15, 2026, to December 31, 2032, restrictions will apply in the following territories:
- Moscow: the entire region.
- Moscow Region: the entire region.
- Kursk Region: Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky, and Khomutovsky districts, as well as the city of Lgov.
The decision continues the policy set by Decree No. 1869 of 2024. At that time, mining was already restricted in regions where the power system is under increased load:
- Chechen Republic: restrictions apply.
- Republic of Dagestan: restrictions apply.
- Republic of Ingushetia: restrictions apply.
- Karachay-Cherkess Republic: restrictions apply.
- Kabardino-Balkarian Republic: restrictions apply.
- New subjects of the Russian Federation: restrictions apply.
- Certain territories of Irkutsk Region: restrictions apply.
Why the Restrictions Were Expanded
The idea to add the Moscow region to the list was discussed back in the spring. In April 2026, the Ministry of Energy of the Moscow Region made such a proposal. The agency noted that about 1 GW of electricity in the region is used for mining needs. The Minister of Energy of the Moscow Region, Sergey Voropanov, also noted that such activity does not provide the region with a significant positive economic effect.
Mining remains an energy-intensive process, as the extraction of digital assets uses the computing power of computers and specialized equipment. The following can be involved in such schemes:
- Personal computer.
- Server.
- Video card.
- Graphics processor.
- Central processor.
In technical terminology, this process is also called mining.
For cryptocurrencies operating on a proof-of-work model, hash function calculations and the chosen algorithm are important. In the case of Bitcoin, which was described by Satoshi Nakamoto, the blockchain plays a key role, where each transaction in computer science is understood as an operation recorded in a distributed ledger system. SHA-2 family algorithms are used in such networks. Proof of ownership works differently: the focus there is not on calculations, but on the participation of asset holders in the network.
How Mining Works and What Is Needed for It
Cryptocurrency mining is a process in which network participants use equipment to perform calculations, confirm transactions, and help create new blocks in the blockchain. In proof-of-work networks, miners solve mathematical problems, and the reward depends on the rules of the specific cryptocurrency and the power of the equipment.
To start mining, you usually need several basic elements:
- Equipment: ASIC devices, GPU video cards, CPU central processors, and in some cases, cloud services.
- Software to connect the equipment to the network and manage mining.
- A mining pool, if the miner wants to combine power with other participants and receive more regular payouts.
- A cryptocurrency wallet to receive rewards.
The main types of mining differ in the equipment or service used:
- ASIC mining is suitable for networks where it is more profitable to use specialized devices.
- GPU mining uses video cards and remains one of the common options for certain cryptocurrencies.
- CPU mining relies on the central processor, but usually lags behind more powerful equipment in terms of efficiency.
- Cloud mining allows you to rent computing power without buying your own equipment.
- Mobile mining is possible on a phone, but due to low power and device wear, its efficiency is usually low.
You can mine on a regular computer or phone, but expectations should be realistic: such equipment rarely provides noticeable profitability, especially when considering electricity, heat, and device load.
In the case of Bitcoin, you do not mine a single Bitcoin itself, but a block. On average, a new block is found about once every 10 minutes, but for an individual miner, the actual time depends on the equipment’s power, network difficulty, and participation in a pool.
Profitability and Choosing a Cryptocurrency
Earnings from mining do not depend on a single parameter, but on a combination of several factors: network difficulty, electricity cost, cryptocurrency price, pool commission, equipment power, and maintenance costs. That is why profitability calculators are usually used before starting: you enter hashrate, power consumption, electricity rate, and pool commission.
When choosing a cryptocurrency for mining, people usually look at profitability, network difficulty, support for specific equipment, and asset liquidity. Among the popular examples for mining remains Bitcoin, as well as other coins that operate on suitable algorithms and are supported by the chosen equipment.
Mining Risks and How It Differs from Trading
Mining is associated with several groups of risks. Financial risks arise due to exchange rate volatility, increased network difficulty, and reduced profitability. Technical risks are related to equipment failure, overheating, and equipment obsolescence. Legal risks depend on legislation, regional bans, and registration rules. There are also energy and environmental risks, as mining consumes a lot of electricity and can increase the load on the power system.
Mining differs from trading in the way income is generated. In mining, the participant invests in equipment, electricity, and maintenance of computing power. Trading is the buying and selling of cryptocurrencies in anticipation of price changes. For mining, equipment, rates, and network difficulty are important, while for trading, market analysis, risk management, and liquidity matter.
How This Relates to Cryptocurrency Market Regulation
The new restrictions fit into the mining regulation system, which began to take shape in October 2024. At that time, President Vladimir Putin signed a law requiring legal entities and individual entrepreneurs to be entered into a special register of the Federal Tax Service if they want to legally engage in digital currency mining.
Individuals can engage in mining if they comply with the law and current regional restrictions. For legal entities and individual entrepreneurs, the key condition for legal operation is registration in the FTS register. Violation of the rules, including operating in a prohibited zone or without mandatory registration, may result in liability as provided by law.
The same law gave the government the right to introduce mining bans in certain regions. The Cabinet of Ministers can determine the grounds for such measures and the procedure for their application if miners’ activities create an additional load on the power system or other risks for the territory.
In July, the State Duma also adopted the law “On Digital Currency and Digital Rights” in its final reading. It establishes general rules for the circulation of cryptocurrency in Russia. The document provides that transactions with digital assets should mainly take place on exchanges, and storage and accounting of assets are entrusted to digital depositories.
The concept of crypto exchangers is introduced separately. These market participants must undergo official registration and meet capital requirements. Thus, digital currency and operations with it are gradually moving into a more formalized legal field, and cryptocurrency mining in energy-intensive regions is receiving separate restrictions.
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