Russia claims crypto mining ban is easing Siberia’s power grid

Russia’s Energy Ministry claims that banning crypto mining in parts of Siberia has eased pressure on the region’s power grid. Officials reported a reduction of over 300 MW in electricity consumption since the restrictions took effect on 1 January 2025. The ministry insists this has prevented blackouts during peak winter months and has announced plans for ongoing meetings to assess the policy’s impact.

Despite government assurances, local reports suggest crypto mining remains strong in Siberia. Power provider Irkutskenergosbyt noted that household electricity usage increased by 1% in January compared to the previous year, despite milder winter temperatures. Industry analysts also estimate that Russia’s Bitcoin mining sector expanded by 7% in 2024, indicating continued activity.

Some experts argue the ban does little to curb mining operations, with many industrial-scale enterprises still running in parts of Irkutsk. While Bitcoin remains the dominant cryptocurrency for miners, there is also significant interest in Litecoin, Kaspa, Ethereum, and Monero. Meanwhile, the Energy Ministry is pushing for a national register of mining equipment to track legal operations and tackle illegal activity.

As debate over the effectiveness of the restrictions continues, Russian energy firms have approved plans that could see power allocated to mining increase significantly in the coming years. Experts remain divided on whether stricter regulations will stifle the industry or simply drive it further underground.

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