Russia to Block Data Processing Centers from Mining Crypto with Cheap Power

2025-07-13 19:07:03 Primitive Reading

The Russian government is poised to ban domestic data processing centers from mining crypto if they use subsidized power.

The Russian media outlet RBC reported that the government has revamped a draft law on mining that passed a first reading in the State Duma back in 2022.

Government officials are now working with lawmakers on a bid to refine the bill ahead of a second reading.

Inside a Russian data processing center. (Source: @regruvideo/YouTube/Screenshot)

Mining Crypto Soon to Be Off-limits in Many Russian Data Centers

The bill proposes asking data processing centers to sign up to a registry curated by the Ministry of Digital Development and Communications.

This process will involve operators pledging not to mine crypto at their centers. Only operators who make these pledges will be allowed to receive electricity at preferential rates.

The bill’s architects say its goal is to prevent miners from being able to claim benefits when paying for electricity.

These benefits will only be provided only to data centers that have been formally recognized as “communication facilities.”

Russian electricity firms provide subsidized power to residential users, as well as industrial sector and commercial firms.

But in recent months, lawmakers have called for power companies to roll out special unsubsidized rates for crypto mining companies.

Membership of the registry will be entirely voluntary, the bill’s authors added. However, all firms that join the registry will be barred from even housing crypto mining rigs, even if these are not connected to the internet.

Industrial Miners Say They’re Ready to Comply

Russian crypto mining experts said the bill has not taken them by surprise. RBC quoted the Intelion Director-General Artem Shchepinov as stating that he anticipated the measure.

Shchepinov added that it would help solidify Russia’s technological sovereignty and strengthening regulated its digital infrastructure.

Others, however, complained that Moscow has not asked the private sector for input before formulating the bill.

A blockchain expert was quoted as saying that the new law could have a detrimental impact on both the industrial crypto mining industry and the conventional data center industry.

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