President Putin blames energy deficits for the creeping ban on crypto mining across Russia

President Putin highlighted that energy shortages are a primary reason for the increasing bans on crypto mining in Russia. Local authorities have urged central government action, citing insufficient energy supplies affecting regional development.

Electricity rates have surged lately, with local tariffs up by 11.6%. These increases significantly affect mining profitability and may drive investors toward regions like the United States, which currently has a thriving mining sector.

A full ban on crypto mining until 2031 is in place in nearly a dozen Russian regions. Although some areas are exempt, the overall profitability and competitive standing of Russian miners are increasingly jeopardized by these regulations and rising energy costs.