Proposed Russian Crypto Ban May Push Miners West

If Russia follows through with proposed plans to ban cryptocurrency mining, miners may be forced West

article-image

Bank of Russia; Source: Shutterstock

share

key takeaways

  • Russia’s central bank is calling for a ban on several cryptocurrency operations, including mining
  • The report comes months after the energy ministry threatened to impose tariffs on miners for energy usage

Cryptocurrency miners may be forced out of Russia if the country’s central bank gets its way. 

The government entity called for a ban in a report published Thursday, citing concerns that digital assets could undermine financial stability. 

The move could strike a major blow against the world’s third-largest mining hub, according to data from the University of Cambridge — rising in the ranks after China banned the practice in June 2021.

“I don’t have a confident view on whether Russia will undertake a China-style mining crackdown,” said Nic Carter, partner at crypto venture capital firm Castle Island Ventures. “But if they do, it will definitely affect Russian miners — many of whom are using natural gas and coal.” 

The report is only the latest step Russia has taken in recent months to enforce tighter regulations on digital assets.

Following China’s ban, Russia’s energy ministry said it would consider tariffs on miners. The ministry estimated that energy usage increased 158% year-over-year in the Irkutsk region due to an increase in mining operations, according to a report at the time.

Amid the Russian concerns, Kazakhstan, the second-largest mining territory, is currently grappling with increasing unrest and ensuring internet outages, leaving some experts to wonder where miners will go now. Prior to Thursday’s report, Carter speculated that miners in Kazakhstan might be headed for Russia. Now he’s not so sure. 

“Ultimately, it looks like the only ‘safe’ place to mine is the US or Canada, and even then on a state-by-state or province-by-province basis,” he said. 

Though China’s ban triggered a sharp selloff, markets were unphases by the Russia news, with Bitcoin trading 2.4% higher over the last 24 hours as of publication. 

“Russia only hosts a little more than 10% of Bitcoin’s current mining power,” said Anto Paroian, chief operating officer at crypto investment firm ARK36. “When and if the ban is finally enforced — which could still take some time — Russian miners may be forced to move their operations elsewhere but any effect of this development on bitcoin’s price will be extremely short-lived.” 


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

tg trading bot report graphic.png

Research

Telegram trading bots have found their primary niche in highly speculative token launches and retail-dominated memecoin markets, with many features specifically tailored to token sniping and copy-trading strategies.

article-image

Paradigm’s Charlie Noyes thinks that the attention on stablecoins is well-deserved after Mesh’s $82 million round

article-image

Crypto may benefit from developments during the second quarter after a rough start to the year

article-image

With a friendlier regulatory outlook and the airdrop flow being stemmed, some are looking to how new native tokens can become valuable assets

article-image

The recent action paints an uncertain picture for future monetary policy moves

article-image

Is the finance world becoming “more liquid”? Experts give their takes as TradFi players consider new moves