Russia Becomes Second Largest Crypto Miner After US As US Regulatory Landscape Changes: Report
Russia has reportedly emerged as the second largest Bitcoin (BTC) miner of all countries around the world, while the United States continues to sit at number one.
According to a new report from Russian news publication Kommersant, Russia’s initial rise to second place comes amid US regulatory uncertainty that could soon shake up the rankings.
“Russia has risen to second place in the world in cryptocurrency mining. The United States remains the leader. However, the uncertainty in the regulation of cryptocurrencies there could trigger a new redistribution of the market.”
Kommersant also notes that just like in the US, Russia also faces regulatory uncertainty in the crypto and mining industry.
“However, in Russia, in general, the legal framework for miners has not yet been developed, experts emphasize. In addition, the risk of sanctions increases both in relation to Russian players and their counterparts abroad.
The ranking is based on power usage involved in crypto mining, and cites data from Bitriver, Russia’s largest mining provider.
According to Bitriver CEO Igor Runets, the US mining industry faces headwinds from rising electricity prices, reduced profitability, tax problems and over-leveraged mining operations.
“Additionally, the vast majority of equipment was purchased by American miners on credit, so many over-leveraged companies are about to go bankrupt or have already gone bankrupt.”
The Biden administration has proposed taxes equal to 30% of the cost of electricity used in mining digital assets.
If approved, the levy would take effect in 2024 and have a staggered implementation schedule with a rate of 10% in year one, 20% in year two and 30% in year three.
Bitcoin is trading at $27,353 at the time of writing, down 1.1% in the last 24 hours.
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