Russia has ordered a year-round shutdown of cryptocurrency mining in Moscow, the surrounding Moscow Region and parts of Kursk through Dec. 31, 2032, according to a CoinDesk report. The restriction, established under government decree No. 936, also bans participation in crypto mining pools and is intended to preserve power-grid stability as energy-intensive mining facilities strain regional capacity.
Why Moscow Is Curbing Mining After Legalizing It
The new curb follows Russia’s 2024 legalization of registered mining and separate restrictions already imposed in ten other regions. The policy shift is a stark reminder that even jurisdictions once open to miners are adjusting quickly when electricity demand collides with network reliability. Broader bitcoin capital flows are also recalibrating, as shown by the pending closure of the First U.S. Spot Bitcoin ETF to Close as Inflows Dwindle and AI Lures Capital, which points to how competing technology demands are reshaping market incentives.
Russia’s Hashrate Footprint and Local Grid Pressure
Russia accounted for an estimated 175 exahashes per second, or 16.4% of Bitcoin’s global computing power, in the first quarter, according to Luxor’s Hashrate Index cited in the CoinDesk piece. That made it the world’s second-largest mining nation behind the United States, though it remains unclear how much of that capacity was located in the newly restricted areas. The market has been showing thin participation recently, as BTC-Pulse noted when Bitcoin Hovers Near $64,000 as Thin Volume Points to Stalled Participation, Not Panic, suggesting that mining-policy shocks are landing during a period of already muted risk appetite.
What the 2032 Restriction Means for the Mining Map
The 2032 end date gives local operators little near-term room to resume operations in the affected capital region, and the mining-pool ban makes it harder to participate indirectly. The energy competition is no longer only about Bitcoin; data centers and AI infrastructure are vying for the same power, a dynamic highlighted by the departure of American Bitcoin President Matt Prusak Departs for Giga Energy in AI Infrastructure Shift. If the Moscow restriction holds, the bigger question is whether other high-load regions follow with similarly long-term mining bans.
