Russia Bans Cryptocurrency Mining in Moscow and Kursk Region Until 2032

Russia is expanding its regional cryptocurrency mining bans to Moscow, the Moscow Region, and parts of the Kursk Region from August 15, 2026, through December 31, 2032. Signed by Prime Minister Mikhail Mishustin under Resolution 936, the ban addresses severe power grid strain, with Moscow mining currently consuming 1 gigawatt. The restrictions also target Kursk districts affected by the Ukraine conflict. Meanwhile, the Bank of Russia and the Federal Tax Service are tightening regulatory and tax compliance rules.

Moscow cryptocurrency mining ban

• ▪Russia will ban cryptocurrency mining and mining-pool participation in Moscow and the Moscow Region from August 15, 2026, through December 31, 2032.
• ▪Russian Prime Minister Mikhail Mishustin signed Government Resolution No. 936 on July 25, 2026, which amends a December 2024 decree to include Moscow.

Kursk region mining restrictions

• ▪Kursk Oblast Governor Alexander Khinshtein cited the ongoing conflict in Ukraine as a primary driver of the region's power crisis necessitating the mining ban.
• ▪The cryptocurrency mining ban covers eight municipal districts in the Kursk region—Belovsky, Bolshesoldatsky, Glushkovsky, Korenevsky, Lgovsky, Rylsky, Sudzhansky, and Khomutovsky—and the city of Lgov.

Power grid strain concerns

• ▪The Moscow region has at least 65 data centers with a cumulative capacity of 734 megawatts, which is projected to reach 3.6 gigawatts by 2032.
• ▪Cryptocurrency mining currently consumes an estimated 1 gigawatt of electricity within the Moscow power system.
• ▪The Russian Ministry of Energy reported that previous mining bans in Siberia successfully reduced the load on the Siberian power grid by more than 300 megawatts.

Russian cryptocurrency market regulation

• ▪The Bank of Russia prepared draft regulatory acts to launch an organized cryptocurrency market, including rules for trading and calculating market prices.
• ▪Russia legalized cryptocurrency mining in 2024 under Law No. 221-FZ, which was followed by regional mining restrictions in over 13 energy-deficit regions.

Miner legal compliance requirements

• ▪A bill advancing through the Russian State Duma proposes criminalizing unregistered mining, with penalties up to five years in prison and fines of 2.5 million rubles.
• ▪Cryptocurrency miners operating in the newly restricted Moscow and Kursk areas must halt local operations or relocate their equipment by August 15, 2026.

Tax administration for miners

• ▪Under the new regulatory framework, legal operations for cryptocurrency miners require compliance with territorial restrictions, tax accounting, and energy consumption limits.
• ▪The Federal Tax Service of Russia is responsible for tax administration as part of the country's efforts to regulate digital assets and bring the market out of the gray zone.