The Global Crackdown: Countries Banning Crypto Mining in 2025
Cryptocurrency mining—the energy-intensive process of validating blockchain transactions—faces escalating global restrictions. Driven by energy crises, environmental concerns, and economic priorities, nations worldwide are imposing outright bans or severe limitations. This article examines the current regulatory landscape, highlighting banned jurisdictions, enforcement tactics, and emerging trends.
🌍 1. Comprehensive Bans: Nations Prohibiting All Crypto Mining
These countries enforce blanket prohibitions on mining operations:
- China: Once home to ~65% of global Bitcoin mining, China banned all crypto mining in 2021. Authorities cited energy waste, financial risks, and fraud. Despite this, underground operations persist, accounting for ~20% of the global hash rate 23.
- Algeria: Outlawed buying, selling, or using cryptocurrencies in 2017. Mining bans are strictly enforced to protect the Algerian dinar and prevent capital flight 13.
- Bangladesh: Criminalized mining and trading under anti-money laundering laws. Violations risk imprisonment, though peer-to-peer activity continues covertly 23.
- Nepal: The central bank (NRB) deems mining illegal under the Foreign Exchange Act. Raids target mining farms, especially near the Indian border 23.
- Egypt: Banned since 2018, with Islamic authorities declaring crypto haram (forbidden). The government fears capital flight and currency instability 13.
- Afghanistan: The Taliban reinstated a ban in 2022, shutting down exchanges and arresting operators
| Country | Year Enacted | Key Reasons | Enforcement Status |
|---|---|---|---|
| China | 2021 | Energy waste, financial risks | Underground mining persists |
| Algeria | 2017 | Currency protection, illicit finance | High surveillance |
| Bangladesh | 2017 | Money laundering, monetary stability | Strict penalties |
| Nepal | 2021 | Fraud, foreign exchange control | Active raids |
| Egypt | 2018 | Religious edicts, economic stability | Moderate enforcement |
⚡ 2. Energy-Driven Restrictions: Temporary or Regional Bans
Power shortages and grid stability concerns drive targeted curbs:
- Russia: Banned mining in 10 regions in January 2025 to address an energy crisis exacerbated by aging infrastructure. The government prioritizes heating and essential services over mining 7.
- Norway: Plans a 2025 ban on new proof-of-work mining data centers. The government aims to redirect ~0.7 TWh of electricity annually to housing and manufacturing 411.
- Kuwait: Recently banned mining due to grid strain, reflecting broader Gulf energy anxieties 5.
- Iraq: Prohibits institutional mining since 2017, though individual enforcement remains lax
🔍 3. Enforcement Tactics: How Bans Are Implemented
Governments deploy multifaceted strategies to curb mining:
- Energy Monitoring: Tracking abnormal electricity usage (e.g., China’s crackdowns in Sichuan) 2.
- Hardware Restrictions: Blocking ASIC miner imports at borders (Algeria, Nepal) 2.
- Internet Surveillance: Throttling connections to mining pools (Russia, Egypt) 27.
- Public Incentives: Rewarding citizens for reporting mining activity (China) 2.
Despite these measures, VPNs, smuggled hardware, and off-grid operations sustain underground mining.
⚖️ 4. Shifting Landscapes: From Bans to Regulation
Some nations are transitioning toward controlled legalization:
- Morocco: After banning mining in 2017, it now drafts regulations to recognize crypto assets and explores a CBDC 23.
- Bolivia: Reversed its 2014 ban in 2024, allowing regulated crypto transactions 3.
- Ethiopia: Paradoxically bans crypto transactions but licenses mining farms to attract foreign currency (e.g., Bitcoin miners pay electricity in USD)
🌱 5. Environmental Pressures Driving Policy
Environmental critiques amplify regulatory momentum:
- Bitcoin mining consumes ~150 TWh yearly—equivalent to a small nation’s usage 5.
- Norway labels proof-of-work mining “wasteful,” favoring less intensive methods like proof-of-stake 11.
- The UN links Bitcoin’s carbon footprint to “84 billion pounds of coal”
🔮 6. Future Outlook: Regulation Over Prohibition?
- Trend: Bans are increasingly temporary (e.g., Norway’s 2025 moratorium) or regional (Russia’s energy-crisis response).
- Motivator: Countries like Ethiopia and Morocco recognize mining’s economic potential if managed sustainably 36.
- Wildcard: Climate policies could expand restrictions; the EU plans to ban privacy coins (Monero, Zcash) by 2027
A Fragmented Global Landscape
Crypto mining bans reflect a struggle to balance innovation with energy security, economic control, and environmental responsibility. While China and Algeria enforce strict prohibitions, energy-stressed nations like Russia and Norway adopt targeted, temporary measures. The trend toward regulated acceptance—seen in Bolivia and Morocco—suggests future policies may prioritize oversight over outright bans. Nevertheless, mining’s decentralized nature ensures underground operations persist, underscoring the challenge of enforcing absolute prohibitions.