Russia has imposed a long-running crypto-mining restriction in its capital region, according to CoinDesk, banning mining in Moscow, the surrounding Moscow Region and parts of Kursk through Dec. 31, 2032. CoinDesk reports that the measure was established under government decree No. 936 and also bars participation in crypto mining pools. The decree was signed on July 25 and published on July 31, according to local media cited in the report. The stated rationale is grid capacity. Russia’s Energy Ministry said a year-round restriction was needed to lower the risk of power-capacity shortages as energy-intensive mining sites connect to regional grids, CoinDesk reports. The local load is material. Mining currently consumes roughly 1 gigawatt in the Moscow power system, while the region’s data-center capacity could reach 3.6 GW by 2032, or 17% of peak demand, CoinDesk reported, citing Interfax. The national context is larger than the affected region. Russia accounted for an estimated 175 exahashes per second in the first quarter, equal to 16.4% of Bitcoin’s global computing power, according to Luxor’s Hashrate Index as cited by CoinDesk. That placed Russia second behind the U.S., although CoinDesk notes it is unclear how much of that capacity sits inside the newly restricted areas. The policy does not appear in isolation. CoinDesk reports that Russia legalized registered crypto mining in 2024, then banned the activity in 10 regions through March 2031, citing electricity demand. Year-round restrictions were later extended to southern Irkutsk and most areas of Buryatia and Zabaykalsky Krai. Mining also intersects with Russia’s sanctions workaround channels, according to the report. Finance Minister Anton Siluanov said in December 2024 that Russian companies had been using domestically mined bitcoin in international payments after legal changes designed to counter Western restrictions. CoinDesk also reports that legislation passed in July maintained Russia’s ban on domestic crypto payments while preserving exceptions for foreign-trade settlements and transactions involving mined cryptocurrency. The U.S. has previously targeted the sector. CoinDesk notes that the U.S. Treasury sanctioned BitRiver and 10 subsidiaries in 2022, saying Russian mining companies helped the country monetize its energy resources and could offset the impact of sanctions. Who benefits: The Energy Ministry’s stated beneficiary is the regional power system, which it says faces power-capacity risks from energy-intensive mining facilities. The sources do not quantify benefits for consumers or other industries. Who's exposed: Crypto miners operating in Moscow, the Moscow Region and the affected parts of Kursk are directly exposed, as are participants in mining pools covered by the decree. Operators elsewhere in Russia remain subject to the broader patchwork of regional restrictions described by CoinDesk.