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
  • 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:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

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

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers