Russia’s Irkutsk, the nation’s biggest Bitcoin mining hotspot, could impose a year-round ban on all crypto mining activities effective April 1, a news outlet has claimed.
Per a report from the Russian newspaper Kommersant, the ban would apply only in the southern part of the Siberian oblast of Irkutsk, but could run until mid-2031.
Irkutsk Mining Ban Incoming?
Miners in southern Irkutsk have already been ordered to shut down their rigs in the winter months until 2031.
Inside a crypto mining data center in Irkutsk, Russia. (Source: GetBailkal/YouTube/Screenshot)
But many miners have remained in the area on the understanding that they can operate unimpeded in warmer months.
However, top officials warned earlier this year that the existing ban was not doing enough to ease pressure on local power grids.
Kommersant, a media outlet known to enjoy good relations with the Kremlin, said its sources had revealed the Russian government “may impose a total ban on mining in the southern part of the Irkutsk region as early as April 1.”
As Russia’s first BTC mining hub, southern Irkutsk is home to several large mining centers, which collectively consume around 650 MW of power.
A total ban would be highly problematic to these centers, industry insiders told the newspaper.
They added that “in the event of a ban,” they would be powerless to act “due to difficulties connecting to networks in other regions.”
Many nearby regions have also imposed wintertime crypto mining bans, a fact that could leave miners with no choice other than to relocate.
Governors Intervenes
As previously reported, Irkutsk Governor Igor Kobzev wrote to the Kremlin earlier this year to ask for its cooperation.
Kobzev said the power currently provided to miners should be used to “implement socio-economic tasks that are important for the region.”
Irkutsk Governor Igor Kobzev. (Source: AIST TV/YouTube/Screenshot)
The media outlet noted that neither the Ministry of Energy nor the offices of the Governor of the Irkutsk Oblast responded to its request for official comment.
However, the outlet reported that President Vladimir Putin had replied that he had agreed to “consider and support” Kobzev’s request “in the interests of the region.”
The newspaper claimed its (anonymous) sources said the matter was discussed at a government-led power industry summit in Moscow on March 27.
“Based on the results of the meeting, [the government] will likely decide to grant the [governor’s request],” Kommersant’s “sources” claimed.
Sergei Bezdelov, the head of the nation’s biggest crypto mining group, the Industrial Mining Association, said his association was “against any form of prohibition.”
A church in central Irkutsk, Russia. (Source: Fanzuga [CC BY-SA 3.0])
North of Region to Escape Ban?
Kobzev has previously claimed that his plans would leave industrial miners in the north of the oblast free to continue with their work.
But Kobzev has claimed that power shortages in southern Irkutsk are now becoming critical.
He stated that “over the past five years,” energy consumption in the Irkutsk region has “grown by 28%”
The governor blamed mining for contributing to an energy deficit in the region. He said that the deficit could grow to 2.9 GW by 2030 if no action were taken.
The entirety of Siberia has become a hub for Russian crypto miners due to its low electricity prices and famously long and cold winters.
Officials think that total mining load in the region now stands at 1.066 GW, with miners in the north using 419 MW and southern miners using 647 MW.
Legal, industrial miners account for the vast majority (84%) of the energy usage. Kobzev said that mining firms have already obtained permission to bring another 1.272 GW of capacity online in the area.
Irkutsk Mining Bans Already Helping Save Energy, Officials Claim
Irkutsk officials say that the existing ban, which came into force in January this year, has already helped reduce monthly power consumption by 305 MW per month.
Kobzev also claimed that small-scale, quasi-legal crypto miners are also causing a drain on the local grid.
He stated that “commercial consumers operating at low voltages” were using over 160 MW of power per month.
Despite the power issues in Siberia, Irkutsk energy prices for consumers using over 10 MW per month are still “among the most attractive in the country,” Kommersant wrote.
The media outlet wrote that commercial and industrial consumers typically pay prices of around 5 rubles ($0.059) per kWh.
Most Russian crypto mining experts think that around 90% of domestic industrial miners focus their efforts on Bitcoin (BTC).
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