Russia Rises To Be The Second Largest Crypto Mining In The World
- This year, Russia surpassed China to become the world’s second-largest cryptocurrency mining nation.
- Experts stress that the legal framework for miners in Russia has not yet been formed.
- The improved trends are linked to a reduction in mining activity in Kazakhstan last year.
In a surprising achievement, Russia has now surpassed industry titans to become the world’s second-largest cryptocurrency mining nation. According to the Kommersant business dailynews, the increase in crypto mining activities indicates Russia’s rising interest in the cryptocurrency industry and the country’s preparedness to adopt newer technology.
The United States maintained its position as the top nation with the most substantial mining power, with 3-4 GW of mining capacity. After Russia with 1 GW, the Gulf nations are the world’s third-largest mining power, with roughly 700 megawatts (MW) of total electricity.
Canada, Malaysia, Argentina, Iceland, Paraguay, Kazakhstan, and Ireland are next on the list, with 400 MW, 300 MW, 135 MW, 120 MW, 100-125 MW, 100 MW, and 90 MW, respectively.
Russia’s cryptocurrency mining business is rapidly expanding due to a variety of variables, including the country’s abundant natural resources, cheap power prices, and a perfect environment for cooling mining equipment. These benefits have enticed several mining companies to establish themselves in Russia, resulting in considerable growth in the country’s crypto-mining production.
Bitcoin usage is restricted in the country owing to stringent cryptocurrency rules, like President Vladimir Putin’s 2020 law on digital financial assets, which authorized cryptocurrencies but prohibited them from being used to pay for goods and services.
China, which prohibited cryptocurrency mining in 2021, did not appear in the top ten.
This historic milestone comes in the midst of a worldwide upheaval in the crypto-mining scene. Because of China’s recent ban on cryptocurrency mining, several mining businesses have been compelled to relocate. Russia has emerged as an appealing destination for these displaced miners, thanks to its huge undeveloped resources and favorable regulatory framework.
Yet, cryptocurrencies have been connected to Russia’s sanctions evasion techniques, with the US blacklisting a Bitcoin and Ethereum address in February that it alleged was engaged in the country military equipment sales overseas.
According to analysts, the country’s rise in the rankings is largely due to Kazakhstan’s shifting stance on mining. Russia surpassed Kazakhstan, which put limitations on crypto mining operations in 2022 and currently ranks ninth in gaining second position for the first time.
Russia’s spectacular increase in cryptocurrency mining demonstrates the country’s dedication to adopting cutting-edge technology and reinforces its place as a significant participant in the global crypto business.
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