Russia Bans Crypto Mining in Buryatia and Zabaykalye for Five Years

Year-Round Ban Replaces Seasonal Restrictions

As of April 1, 2026, the Russian government has imposed a full year-round ban on cryptocurrency mining across significant portions of the Republic of Buryatia and Zabaykalsky Krai. The prohibition will remain in effect until March 15, 2031 — spanning nearly five years.

In Buryatia, the measure covers 19 districts and the republic's capital, Ulan-Ude. In Zabaykalsky Krai, the ban extends to 14 districts, 14 municipal okrugs, the city of Chita, the settlement of Aginskoye, and the closed administrative-territorial formation of Gorny. Previously, these regions permitted crypto mining with seasonal limitations only.

Russia first introduced complete regional bans on cryptocurrency mining in December 2024. The latest expansion signals that authorities are intensifying pressure on the industry in energy-scarce territories.

Why This Matters

The shift from seasonal restrictions to a full year-round prohibition across two major federal subjects reflects a hardening stance on mining regulation at the regional level. Both Buryatia and Zabaykalsky Krai face limited energy capacity, and widespread mining operations exacerbate power shortages for residents and local industry.

The simultaneous push on two fronts — regional bans and tougher federal penalties — paints a clear picture of Russia's intensifying control over the crypto mining sector.

Criminal Penalties for Illegal Mining

On March 31, just one day before the regional ban took effect, a bill introducing criminal liability for illegal cryptocurrency mining and unlicensed mining infrastructure operations was submitted to the State Duma.

Under the proposed legislation, offenders face:

• Fines of up to 2 million rubles;
• Prison sentences of up to five years.

Enhanced penalties are stipulated for organized groups that cause particularly large-scale damage or generate especially high illegal income. Full restitution of damages would allow offenders to avoid criminal prosecution.

Miners Reluctant to Register

The bill's authors justified the need for prison terms by pointing to miners' widespread reluctance to register with the Federal Tax Service (FNS). According to expert estimates, out of approximately 50,000 potential market participants, only 1,489 entities have been included in the official registry — less than 3%.

The legislation is expected to pass during the State Duma's spring session, with its provisions taking effect on July 1, 2026.

Crypto Legalization on a Parallel Track

Amid the mining crackdown, the Russian government approved a package of bills on March 30 aimed at legalizing the circulation of digital currencies and digital rights in the country. This legislative package is slated for submission to the State Duma in early April 2026.

Russia is thus pursuing a dual strategy: building a legal framework for legitimate cryptocurrency markets on one hand, while aggressively cracking down on shadow operations and uncontrolled mining in energy-deficit regions on the other.