Russia is widening its restrictions on cryptocurrency mining to include Moscow, the surrounding Moscow Region, and several districts in Kursk Region, extending the curbs through the end of 2032. The measure is set to take effect on Aug. 15 after authorities delayed an earlier July 1 start date.

The policy matters beyond Russia because the country remains one of the largest Bitcoin mining centers in the world. Hashrate Index estimated Russia accounted for about 17.2% of global Bitcoin hash rate in the third quarter of 2026, second to the United States.

Energy demand is at the center of the order

Russian authorities said the restrictions are aimed at protecting the power system from the heavy electricity consumption associated with mining. The Ministry of Energy has argued that large mining facilities can put pressure on the grid and reduce capacity available to other consumers.

According to the draft decree, limiting mining is necessary to maintain electricity supply as data-center demand grows. The source article says roughly 65 data centers with combined capacity of 734 megawatts are connected across Moscow and the wider region, including 19 facilities in the Moscow Region with total capacity of 233 megawatts.

A major mining jurisdiction faces tighter limits

The expansion of the ban is significant because Russia has remained a major location for Bitcoin mining even as conditions have become more difficult for some operators. Hashrate Index put Russia’s mining power at around 162 exahashes per second and estimated the United States held about 36.7% of global hash rate in the same period.

The exact scale of Russia’s mining share has varied depending on the source and methodology. Domestic reporting cited in the source article, including from Kommersant, placed the country’s share at roughly 13% to 17% in 2025. The report also noted that higher energy costs in Russia, including grid-connection costs above global levels, had already been squeezing smaller miners before the new Moscow-area restrictions.

Capacity may shift rather than vanish

The source article suggests that mining capacity affected by the Russian measures is more likely to move than disappear entirely. Previous shifts have sent operations toward the United States, Kazakhstan, and other parts of Central Asia, and further relocation could follow if the latest restrictions are enforced as planned.

A reduction in Russian hash rate could also have short-term effects on the wider Bitcoin mining market. The report says a temporary decline in network difficulty could improve profitability for efficient miners elsewhere until the system adjusts, while older or less competitive operations may be pushed out.

Part of a broader regional crackdown

Moscow’s inclusion follows earlier restrictions introduced across other Russian regions and appears to continue an energy-policy approach rather than a financial-policy one. Earlier in 2026, authorities announced curbs in ten regions, including Dagestan, Chechnya, and parts of Donetsk, Luhansk, Zaporizhzhia, and Kherson, according to the source article.

The report says additional bans may still be introduced if regional authorities request them. For now, the next confirmed step is the Aug. 15 start date for the Moscow, Moscow Region, and Kursk-area restrictions, which are scheduled to remain in place until Dec. 31, 2032.

Source: Cryptopolitan