Russia Becomes the Second-Largest Crypto Miner Behind the United States As American Regulations Change
Recent research indicates that Russia has surpassed the United States as the world’s second-largest Bitcoin (BTC) miner.
According to a new report by the Russian news outlet Kommersant, Russia’s rise to second place for the first time coincides with regulatory ambiguity in the United States that could soon cause a shift in the rankings.
“When it comes to cryptocurrency mining, Russia is now second only to China. The United States remains the dominant nation. Nonetheless, the ambiguity surrounding the regulation of cryptocurrencies there may result in a market redistribution.”
Kommersant also observes that similar to the United States, Russia confronts regulatory uncertainty in the cryptocurrency and mining industries.
The classification is based on the power consumption of crypto mining operations, with data from Russia’s largest mining provider, Bitriver.
According to Igor Runets, chief executive officer of Bitriver, the American mining industry is facing headwinds from rising electricity costs, decreased profitability, tax issues, and overleveraged mining companies.
In addition, the overwhelming majority of mining equipment was purchased on credit by American miners, so many overleveraged companies are either in the process of filing for bankruptcy or have already declared bankruptcy.
The Biden Administration has proposed tariffs equal to thirty percent of the electricity costs incurred by digital asset mining operations.
If passed, the tax would begin collecting in 2024 and phase in at a rate of 10% in the first year, 20% in the second year, and 30% in the third year. At the time of writing, Bitcoin is trading at $27,353, a decrease of 1.1% over the past 24 hours.
Also Read: Binance Returns to Russia and Removes Restrictions on Russian Users
