A new estimate asserts that the Crypto Mining Russia Could Grow business could experience growth of “between 20% and 40%” in 2024. According to media outlet Overclockers, industry sources made the accusations in a BitRiver study. The second one is the largest cryptocurrency miner in Russia. The company is heavily involved in a legislative effort to “legalize” the industry.
Russian Crypto Mining Industry “Continues to Grow”
According to the study, crypto miners were supposedly seeing “good growth dynamics” because of the “low cost of electricity” and “the absence of strict regulation by the authorities. “In 2023, the industrial Crypto Mining Russia Could Grow market “doubled in size,” according to the report’s citation of Sergei Bezdelov, director of the Industrial Mining Association. BitRiver asserts that local Bitcoin miners amassed around BTC 54,000 in the past year.
The company claimed that among the world’s leading cryptocurrency miners, Russia “continues” to rank high. BitRiver further asserted that Bitcoin mining consumes “over 95%” of the “computing resources” of Russian miners. Nevertheless, this statistic is not universally accepted by specialists. Approximately 90% of Russia’s mining activity is devoted to Bitcoin, according to Roman Nekrasov, co-founder of the Encry Foundation. He said 10% of Russia’s miners are involved with alternative cryptocurrencies.
Market Still Largely Unregulated
Russian mining is still unrecognized. Still, several Moscow-based lawmakers have advocated for outright bans on cryptocurrency. The mining industry demands that lawmakers “hurry up and legalize” their business, regardless of the cost to themselves through increased taxes. To relieve strain on already-stressed power systems, the Energy Ministry has proposed an annual shutdown of mining rigs for a certain period.
Low Power Costs Spark More Growth Potential
There was input from solicitors. They informed the paper’s writers that crypto and crypto mining are already covered under Russian law. Russian legislation does not “prohibit” the creation of “Crypto Mining Russia Could Grow farms,” according to Elizaveta Vikhlyantseva of the Vegas Lex law firm. Law firm Rustam Kurmaev and Partners’ Yaroslav Shitsla, who heads up the IT and IP dispute resolution department, added, “Cryptocurrency has already been recognised as property.”
Shitsla cited the statute “On Digital Financial Assets” to support this assertion. Even if this is so, others have criticized the law, saying it is “lacking in substance.” It would appear that the FATF (Financial Action Task Force) concurs. As a result, Russia’s compliance rating has been reduced. In any case, the experts were optimistic. One of Terracrypto’s founders, Nikita Vassev, blamed Russia’s cheap electricity for the country’s explosive mining boom.
Russian miners also benefited from the country’s “climatic conditions,” according to Vassev. As the expert pointed out, many miners want to work in Siberia because of the possibility of reducing cooling expenses. Many production sites” in the nation may “easily be repurposed for Bitcoin mining,” according to experts. The majority said that “positive conditions for cryptocurrency-related business” are created by the “lack of strict control by local regulators.”
FAQs
What percentage of Russian crypto mining is dedicated to Bitcoin?
Around 90% of Russia’s crypto mining activity focuses on Bitcoin, with the remainder on alternative cryptocurrencies.
Is crypto mining currently regulated in Russia?
While largely unregulated, there are ongoing efforts to formalize crypto mining, though some lawmakers have proposed outright bans.
What legal stance does Russia take on cryptocurrency?
Russian law recognizes cryptocurrency as property under the “On Digital Financial Assets” statute, but critics argue that regulations lack depth.
