Crypto & Energy in Eurasia

Mining: legal, registered — and switched off region by region

Russia legalised industrial mining on 1 November 2024. Legal entities and sole traders must be entered in a registry kept by the Federal Tax Service; private individuals may mine without registration as long as they stay within a government limit of 6,000 kWh a month. The registry has not caught up with the industry: according to the government's explanatory note to a bill submitted in March 2026, only 1,489 miners are registered (609 companies, 880 sole traders), while the tax service estimates that about 50,000 individuals and firms mine.

Instead of a national ban, the government restricts mining where electricity is short. The legal basis is Government Decree No. 1869 of 23 December 2024, which has been widened several times since:

• North Caucasus: year-round ban until 15 March 2031 in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia and Chechnya.
• Southern Siberia: the original winter-only ban (15 November – 15 March) was turned into a year-round ban for the south of Irkutsk Oblast in 2025. Decree No. 280 of 18 March 2026 did the same for 19 districts of Buryatia including Ulan-Ude and for districts of Zabaykalsky Krai including Chita, from 1 April 2026 to 15 March 2031. Installations that are not connected to the unified grid are exempt.
• Moscow region: Decree No. 936 of 25 July 2026 bans mining and participation in mining pools in Moscow, Moscow Oblast and eight districts of Kursk Oblast plus the city of Lgov from 15 August 2026 to 31 December 2032.

The energy angle

The Energy Ministry estimates miners' annual consumption at 16 billion kWh, roughly 2% of Russian electricity demand. The system operator put the grid-connected capacity of miners and data centres at 4 GW in 2025, a third more than a year earlier. Illegal mining cost the grid company Rosseti 4.7 billion rubles in 2025, according to the State Duma's energy committee. For 2025, the tax service calculated potential tax payments by registered miners of 567 million rubles.

Enforcement: a new criminal-code article is on its way

Bill No. 1193493-8 adds Article 171.6 to the Criminal Code: mining or operating mining infrastructure without registration becomes a crime once income or damage exceeds 3.5 million rubles (fine of up to 1.5 million rubles or up to two years of forced labour). Above 13 million rubles, or for organised groups, the bill provides for up to five years in prison and confiscation of property. The Duma passed it in first reading on 27 May 2026; the second reading is outstanding.

Trading and payments: 282-FZ

Federal Law No. 282-FZ 'On Digital Currencies and Digital Rights', signed on 4 August 2026, has been in force since 1 September 2026. It gives crypto a place in the supervised financial system: residents trade through brokers, exchanges, management companies and digital depositories. Crypto exchange organisers must be Russian companies with at least 15 million rubles of equity and be listed in the Bank of Russia's registry. Existing operators have until 1 July 2027 to comply. The Bank of Russia confirmed in an FAQ of 12 October 2026 that direct deals between individuals remain legal only until that date. Implementing rules foresee a suitability test for retail investors and an annual purchase cap of 300,000 rubles for non-qualified investors.

Paying for goods and services in crypto inside Russia remains prohibited. Settlements under foreign-trade contracts are allowed; Sberbank launched cross-border crypto payments for corporate clients on 1 September 2026.

Watch: second reading of Article 171.6; Bank of Russia's final retail rules; further additions to the ban list ahead of the winter peak.

Mining: licensed, metered, taxed per kilowatt-hour

Digital mining is open to Kazakh sole traders and legal entities with a licence. Under the new Tax Code in force since 1 January 2026 (Articles 657–661), miners pay a fee on the electricity they consume: 2 tenge per kWh as the base rate, 1 tenge for power from their own renewable plants in Kazakhstan or from installations not connected to the unified grid, and 25 tenge per kWh without a licence or working meters. The Association of Blockchain and Digital Mining has asked the government to abolish the fee; the digital ministry supports a revision, and the agencies must review the proposals by 16 November 2026.

The energy angle

Miners buy power from the Single Purchaser in separate centralised auctions, but only up to a quota that the system operator recalculates every hour for each grid zone. Isolated power plants may also sell directly to miners with the system operator's approval. According to the authorities, miners consumed 3.5 billion kWh in 2025 and 1.4 billion kWh in the first half of 2026. Mining pools reported 3,593 BTC mined in 2025 and 1,782 BTC from January to July 2026.

New in 2026: strategic mining and a state crypto reserve

Government Resolution No. 638 of 18 July 2026, in force since 1 August, creates the status of 'strategic miner'. Applicants need their own data centre of at least 150 MW and pass technical and financial checks. In return they can secure electricity quotas at capped prices under contracts of up to ten years. They must transfer part of the mined assets — reported at 10% of output net of electricity and delivery costs — to the National Strategic Crypto Reserve via an Astana Hub fund. Regular mining can run in parallel with separate accounting.

Trading

Law No. 259-VIII of 16 January 2026 added a chapter on unsecured digital assets to the Law on Digital Assets. Since 1 May 2026, crypto can be traded through exchange operators licensed by the National Bank, ending the monopoly of platforms in the Astana International Financial Centre. Crypto is not legal tender.

Watch: decision on the 2-tenge fee after 16 November; first strategic-miner approvals; averaged-quota power purchases drafted by the Energy Ministry.

Mining: licensed companies, solar first

The National Agency of Perspective Projects (NAPP) is the sole crypto regulator. Since its 2023 licensing rules, only legal entities may mine, at a registered address, and primarily with solar power; electricity from the national grid costs miners more. Mining of anonymity coins is prohibited.

New in 2026: Besqala Mining Valley

A presidential decree signed on 17 April 2026 and effective 20 April turns the entire Republic of Karakalpakstan into a special mining zone. Only legal entities registered and operating in Karakalpakstan can become residents; founders and managers may not have convictions for economic crimes. Residents' mining income is exempt from tax until 1 January 2035. Instead they pay a monthly fee of 1% of mining income to the zone's directorate. Inside the zone the solar-only rule no longer applies: renewables, hydrogen and grid power are allowed, the latter at higher tariffs. Mined coins may be sold on domestic or foreign platforms, but the proceeds must be transferred to banks in Uzbekistan.

Watch: the Tax Code amendments the government was ordered to draft; first resident registrations in Besqala.

Mining: a closed shop

President Sadyr Japarov has said that no new permits for mining farms are being issued because of the electricity shortage. Only two legal farms operate — one in Kemin and one at the Kambar-Ata HPP-2, with a combined 60 MW. According to the Energy Ministry they run exclusively on imported electricity, including from Russia. In November 2025 both were disconnected for the winter; the then head of the State Committee for National Security warned that anyone restarting mining would face criminal liability. Of the 11 companies in the regulator's mining registry, four had their certificates terminated. Mining tax revenue fell more than eightfold year on year in January–February 2026.

The energy angle

The financial market regulator puts miners' electricity consumption at 213.3 million kWh in 2025, about 1.1% of the country's 19.3 billion kWh. Kyrgyzstan depends on the Toktogul reservoir, and an energy-sector state of emergency is in force until the end of 2026.

Stablecoins and sanctions

In October 2025 the government launched the som-pegged KGST stablecoin on BNB Chain, with Binance founder Changpeng Zhao as adviser, and announced a digital som pilot and plans for a state crypto reserve. Several Kyrgyzstan-based firms tied to the ruble stablecoin A7A5 are under EU sanctions.

Watch: whether the two farms are switched off again this winter — last year the order came in mid-November. No decision for 2026/27 had been published by 3 November.

No framework, but a criminal-law stick

Tajikistan has no law that regulates or prohibits cryptocurrency or mining; the head of the Agency for Innovation and Digital Technologies confirmed in February 2026 that no law bans their use. What is regulated is the electricity: in December 2025 parliament amended the Criminal Code to punish mining with stolen electricity with fines of 15,000 to 37,000 somoni and, in aggravated cases, up to eight years in prison. The Prosecutor General's office reported 32 million somoni of damages from power theft by miners recovered in the first half of 2025.

The energy angle

The country relies heavily on hydropower and rations electricity in winter, in some regions to a few hours a day.

From closed to licensed

The Law on Virtual Assets, signed by President Serdar Berdimuhamedov in November 2025, came into force on 1 January 2026. It treats crypto as an object of civil law and an investment instrument, not as currency, security or means of payment. Mining is allowed for sole traders and legal entities — non-residents included — after electronic registration with the Central Bank; the certificate is issued indefinitely. Hidden mining on other people's hardware is banned.

Exchanges and other virtual asset service providers need a Central Bank licence; persons from offshore jurisdictions may not take part. Opening a wallet requires full identification. Advertising must warn that assets are not state-backed and may be lost entirely, and market participants may not use words such as 'Turkmenistan' or 'state' in their names.

Watch: first registered miners and licensed exchanges; any tariff for mining power in a country with some of the world's lowest energy costs.

A walled garden around the Hi-Tech Park

Belarus legalised mining and token trading in 2017. Since September 2024, individuals may buy and sell crypto for money only via domestic platforms registered in the Hi-Tech Park; in December 2025 the authorities blocked access to Bybit, BingX, Bitget and OKX. Decree No. 19 of 16 January 2026 creates 'crypto banks': joint-stock companies that need Hi-Tech Park residency and entry in a National Bank registry and are supervised like non-bank financial institutions.

The energy angle

President Alexander Lukashenko instructed the government in 2025 to expand national mining, pointing to surplus electricity, and proposed data centres in regions with excess capacity.

Under the EU's 20th package, EU persons may no longer transact with crypto providers established in Belarus, and the Belarusian digital ruble is listed.

Mining: open, and visible on the grid

Georgia has attracted miners with cheap hydroelectricity and favourable tax treatment. Individual miners and pool participants do not need to register as virtual asset service providers. Mining's growth shows up in power statistics: reports based on registry data put it at about 5% of national electricity use in spring 2026. In June 2026 the government began installing meters across the mountain municipality of Mestia to curb illegal mining that officials blamed for outages.

Trading: a tightening VASP regime

Exchanges and other service providers must register with the National Bank of Georgia. Amendments to the Organic Law on the NBG of 17 December 2025 gave the central bank full supervision of the sector, from prudential rules to cybersecurity. A regulation of March 2026 governs the issuance of reserve-backed stablecoins, and on 8 September 2026 the NBG tightened registration and operating requirements. The EU's 21st package extended transaction bans to crypto platforms in several third countries, Georgia among them.

An EU-inspired rulebook

The Law 'On Crypto-Assets', adopted on 29 May 2025 and in force since 4 July 2025, is modelled on the EU's MiCA regulation. It covers public offerings and service providers such as exchanges and custodians, which need a licence from the Central Bank of Armenia. Parliament also prohibited the cash trading of crypto assets.

The energy angle

Officials have stated that the rules must not hinder mining, describing it as a tool to balance electricity consumption when there is surplus power.

From grey zone to licensing

Azerbaijan has no dedicated crypto law. The Central Bank issued a regulation on transactions with virtual assets in 2023 and tested services in a sandbox. It has finalised a draft law on virtual assets and crypto markets and submitted it to state bodies; Fidan Tofidi, head of fintech at the Central Bank, said on 29 June 2026 that it could be adopted by the end of the year. The draft requires all virtual asset firms to obtain a Central Bank licence and comply with AML and identification rules.