Russia Rises to Second Place in Crypto Mining Amidst Changing US Regulations: Study
It’s been reported that Russia has now become the second-largest Bitcoin (BTC) miner in the world, right behind the United States which remains in the number one spot. This recent development in the world of cryptocurrency mining comes as the regulatory landscape in the US remains uncertain, which could soon cause a shift in the rankings.
According to a new report by Russian news publication Kommersant, Russia’s rise to second place is due to the amount of power usage involved in their crypto mining operations. However, similar to the US, Russia also faces its own regulatory uncertainties when it comes to cryptocurrency and mining.
Experts emphasize that Russia’s legal framework for miners has not yet been fully developed and that sanctions risks are increasing both domestically and abroad.
The data for this ranking is based on information provided by Bitriver, which is Russia’s largest mining provider. According to Bitriver CEO Igor Runets, the American mining industry is currently facing several challenges such as increasing electricity prices, reduced profitability, tax troubles, and over-leveraged mining businesses. Many US mining companies also purchased their equipment on credit, which has led to a number of over-leveraged companies in the process of bankruptcy or have already gone bankrupt.
The Biden Administration has proposed a new tax equal to 30% of the costs of electricity used in digital asset mining operations. If approved, the tax would go into effect in 2024 with a staggered implementation schedule, beginning with a 10% rate in year one, followed by 20% in year two, and finally reaching 30% in year three.
Clever Robot News Desk 25th April 2023