Cryptocurrency Mining in Moscow and Several Regions of Russia to Be Banned Until 2032

Starting from August 15, 2026, cryptocurrency mining will be banned in Moscow, the Moscow region, eight municipal districts of the Kursk region, and the city of Lgov.

The restrictions by territory are as follows:

• Moscow --- from August 15, 2026, to December 31, 2032.
• Moscow region --- from August 15, 2026, to December 31, 2032.
• Eight municipal districts of the Kursk region --- from August 15, 2026, to December 31, 2032.
• City of Lgov --- from August 15, 2026, to December 31, 2032.

Where and for how long the ban is introduced

The timelines and territories are established in a resolution by the Government of Russia. The document imposes a ban on the extraction of digital currencies in the specified territories for almost six and a half years: from mid-August 2026 to the end of December 2032.

The main reason for the restrictions is related to the energy system. Several risks are important for the networks:

• constant load on equipment;
• sharp increase in electricity consumption;
• risk of uncontrolled energy expenditure;
• necessity to maintain stable supply for residents and enterprises.

Why mining puts a load on energy networks

Mining in networks that use blockchain is associated with verifying transactions and creating new blocks. In such systems, a computer performs calculations, and the proof-of-work algorithm requires significant resources. The higher the computing power of the computer, the more actively the equipment consumes electricity.

Different types of equipment are used for cryptocurrency mining:

• central processing unit (CPU);
• graphics card with a graphics processing unit (GPU);
• application-specific integrated circuit (ASIC).

In practice, not only performance is important, but also energy efficiency: it determines how much electricity is spent on a single computational task. Such principles are known to users of Bitcoin and Litecoin networks, where each transaction in computer science is considered a data operation that needs to be reliably confirmed.

How cryptocurrency mining works

Cryptocurrency mining is the process by which network participants verify transactions, collect them into blocks, and maintain the operation of the blockchain. In networks with Proof-of-Work, this is done through computations: the equipment searches for a suitable solution, and the network verifies the result.

Proof-of-Stake works differently: new blocks are confirmed by participants who lock their coins in the network. Therefore, in such systems, computational power is not the key factor; rather, the rules of participation and the share of coins involved in confirmation play a crucial role.

What is needed for mining

The set of requirements depends on the chosen coin and its algorithm. Typically, a miner needs equipment, mining software, a cryptocurrency wallet, stable internet, reliable power supply, and cooling.

• ASICs are chosen for algorithms where maximum specialized performance is important.
• GPU farms are used where graphics cards are better suited and where it is more flexible to change the direction of mining.
• CPUs are suitable only for specific tasks and usually lag behind specialized equipment in efficiency.
• A pool combines the power of participants and distributes the reward among them, while solo mining leaves the reward to one miner but requires much more luck and power.
• Cloud mining allows renting power from a service but requires careful evaluation of conditions and risks.

Mining on a phone or regular computer is technically possible not always and is often economically weak: the device heats up quickly, wears out, and consumes electricity, while the return may not cover the costs.

Cryptocurrency and equipment are chosen together: first, the network algorithm, mining difficulty, coin price, and electricity cost are considered, and then the power, energy consumption, price, and payback of devices are compared.

Profitability, timelines, and risks of mining

Earnings depend on the price of cryptocurrency, network difficulty, hardware power and cost, electricity rates, pool fees, and cooling expenses. The practical calculation boils down to the difference between the value of mined coins and all costs associated with their acquisition.

For a quick assessment, a simple scheme is used: expected income from mined coins minus electricity, pool fees, cooling, maintenance, and gradual wear of equipment. If the final sum remains positive, mining can be profitable; if expenses exceed income, the setup operates at a loss.

In the Bitcoin network, a new block appears on average about every 10 minutes, but it is impossible to predict a fixed time for mining exactly 1 BTC. Miners compete for blocks, and the outcome depends on network difficulty and the share of computational power. In a pool, a participant usually receives a portion of the total reward proportional to their contribution, while in solo mining, results may come infrequently and unpredictably.

• Price volatility can quickly change profitability;
• Equipment wear and overheating require maintenance and cooling;
• Cyber threats increase requirements for wallets, software, and access;
• Legislative restrictions may change working conditions, as in the case of bans in Moscow, the Moscow region, and parts of the Kursk region.

The future of mining will depend on regulation, energy costs, and technological changes: the industry may shift towards more energy-efficient solutions, large data centers, and models with stricter control.

Context: Responsibility for Illegal Mining

Earlier, on May 27, the State Duma adopted in the first reading a bill on criminal liability for illegal mining of digital currencies. This initiative aims to strengthen control over the industry and bring miners out of the gray zone.

Outside the areas where the ban is imposed, mining will be assessed according to existing industry requirements and new regulations if they are adopted. Violating the ban and illegal mining may lead to liability under the rules that authorities are currently preparing.

The chairman of the commission on mining activities and blockchain technology of the Russian Chamber of Commerce and Industry, Sergey Bezdolov, believes that such measures will help increase tax revenues to the budget.