Russia has emerged as the second-largest crypto miner globally, according to Bitriver, the country’s largest Bitcoin mining provider. Despite cryptocurrencies such as Bitcoin being restricted for use within the country, citizens are allowed to hold them.
However, the Russian central bank has acknowledged that crypto cross-border payments are inevitable, due to the government’s rethinking of its financial strategy in response to financial sanctions.
Despite this, the U.S. has been able to detect and blacklist Bitcoin and ether addresses allegedly used for Russian defense equipment sales abroad. Nevertheless, the Russian government has softened its stance on crypto and even subsidized a Bitriver-run crypto mining facility in Siberia, offering zero land tax, lower income tax rates, and half-price electricity costs.
The global movement of Bitcoin mining around the world depends on geopolitical situations and the crypto thinking of governments. Regulatory concerns and energy supply limitations have also played a significant role in shaping the mining industry’s landscape in various jurisdictions.
For instance, the government of Kazakhstan has imposed higher tax rates on crypto miners and shut them down during winter months to reduce the load on the national power grid.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
