Moscow Bans Bitcoin Mining Through 2032 to Avert Power Shortages Amid Sanctions

Woofun AI reports that a comprehensive ban on crypto mining pools has been imposed across Moscow, the Moscow Region, and parts of Kursk, effective through Dec. 31, 2032. Established under government decree No. 936, the prohibition was signed on July 25 and published on July 31, marking a decisive regulatory shift in the capital's energy landscape.

The restriction targets a sector where Russia accounted for an estimated 175 exahashes per second, representing 16.4% of Bitcoin's global computing power in the first quarter, according to Luxor's Hashrate Index. This capacity placed the nation second behind the U.S., though the specific volume within the newly restricted zone remains unquantified.

Woofun AI data shows the Energy Ministry mandated the year-round restriction to mitigate power-capacity shortages as energy-intensive facilities connect to regional grids. Mining currently consumes roughly 1 gigawatt in the Moscow power system, while data-center capacity could reach 3.6 GW, or 17% of peak demand, by 2032, Interfax reported.

Structurally, the policy intersects with the country's response to Western sanctions, as Russian companies have utilized domestically mined bitcoin for international payments following legal adjustments noted by Finance Minister Anton Siluanov in December 2024. Legislation passed by parliament in July preserved exceptions for foreign-trade settlements and transactions involving mined cryptocurrency, despite maintaining a ban on domestic crypto payments. This mechanism remains critical as conventional channels are constrained, a dynamic highlighted when the U.S. Treasury sanctioned BitRiver and 10 subsidiaries in 2022 for allegedly helping monetize energy resources.

This latest decree extends a regulatory timeline that began when Russia legalized registered crypto mining in 2024, only to ban it in 10 regions through March 2031 due to electricity demand. Year-round restrictions were subsequently expanded to southern Irkutsk and most areas of Buryatia and Zabaykalsky Krai, signaling a sustained prioritization of grid stability over mining expansion.