Russia Becomes Second-Largest Cryptocurrency Mining Country

Cryptocurrency mining has become a hot topic in Russia, as the country has become the second-largest crypto miner in the world. According to a report by Kommersant, a leading Russian business daily, Bitriver, the country’s largest bitcoin mining provider, has stated that Russia’s generating capacity reached 1 gigawatt in the first quarter of 2023, overtaking Kazakhstan to take second place globally.

The United States is still the largest crypto miner, with a capacity of 3-4 gigawatts, but Russia’s rise to second place is a significant achievement. It is worth noting that China, which was once the world’s largest crypto miner, is no longer on the list, as the country banned crypto mining in 2021.

Despite the recent success of the crypto mining industry in Russia, the country’s government has been skeptical of cryptocurrencies. President Vladimir Putin signed a law on digital financial assets in 2020 that legalized cryptocurrencies but banned their use as payment for goods and services.

Cryptocurrencies have also been linked to Russia’s sanctions evasion strategies, with the United States blacklisting a bitcoin and ether address in February that it said may have been involved in Russian defense equipment sales abroad. In addition, the European Union has imposed a total ban on carrying out cryptocurrency transactions with Russian citizens and anyone resident in the country as part of its eighth round of sanctions introduced last year.

Despite the regulatory challenges, the growth of the cryptocurrency mining industry in Russia shows that there is still a significant demand for this type of digital asset. The recent rise of Bitcoin and other cryptocurrencies has attracted many investors and miners around the world, and it seems that Russia is no exception.