Russia Plans Remote Crypto Farm Shutdown Amid Growing Power Crisis


Russia Plans Remote Crypto Farm Shutdown Amid Growing Power Crisis
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- Russia to impose remote shutdowns on crypto miners during peak electricity demand. - New rules target illegal mining, imported equipment, and electricity theft. On July 19, 2025, Cryptopolitan reported that Russia will tighten its cryptocurrency mining regulations to combat widespread power shortages caused by the industry's rapid growth. The proposed measures grant authorities the power to remotely disconnect mining farms during peak electricity demand while also prioritizing energy supply for essential services, marking a major shift in the country's approach to managing these operations. The Russian Ministry of Energy is finalizing rules that classify crypto miners as lower-priority electricity consumers. This reclassification means mining operations will face a less reliable power supply during shortages. Consequently, during crises, authorities will redirect electricity from mining farms to essential services to protect critical infrastructure. The new regulations center on stronger enforcement strategies, including stricter penalties for unauthorized power grid connections and unregistered mining operations. Additionally, the government will require labels for imported mining equipment and is developing a national registry to monitor these devices. In a collaborative effort, the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development are developing this registry, which aims to trace mining operations and evaluate electricity consumption patterns. This regulatory overhaul comes one year after Russia legalized cryptocurrency mining in 2024. The country initially intended to leverage its excess energy for economic benefits; however, the rapid and unexpected growth of mining operations has led to energy deficits, particularly in some regions. In response, local governments have implemented temporary or extended mining bans, which has increased the urgency for nationwide regulations. Authorities expect to submit the finalized proposals for government approval by the end of the current quarter. If implemented, these measures could significantly reshape Russia’s role as a global hub for cryptocurrency mining. These energy shortages are creating uncertainty for crypto miners. According to CoinMarketCap, Bitcoin (BTC) is currently trading at $29,213, and its 24-hour trading volume has risen by 1.7%. Similarly, Ethereum (ETH) stands at $1,872, with its trading volume increasing by 2.1% over the same period. The ongoing energy crisis and looming regulations could further influence mining output and global cryptocurrency markets.
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Market
Published
2025-07-19 17:14
NFT ID
PENDING
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