A recent statement shows that Russian industrial players mined about 54,000 BTC, which is worth about $3B, last year.
Russia Mined About 54,000 Bitcoin (BTC) In 2023
The head of the Russian Industrial Mining Association (IMA), Sergey Bezdelov, released a statement recently where he revealed that about 54,000 Bitcoin (BTC) was mined last year by Russian industrial miners.
He made this statement during the Eastern Economic Forum 2024.
According to Sergey, the mined Bitcoin, which is worth about $3M, could have generated about 50B RUB in taxes for the Russian government had there been a regulation in place then.
He added that the recent move to legalize crypto mining in the country would attract more investors into the crypto industry, subsequently increasing tax revenue for Russia.
Several factors favored this mining activity in Russia. Foremost, Russia has a cheap electric power supply, which is a primary source of attraction for crypto miners who want to make more profits. Also, Russia’s cold climate plays a vital role in reducing the cooling cost for the mining gear.
Russia Legalized Crypto Mining
On August 8, 2024, Russia’s President Vladimir Putin passed a law that legalized crypto mining in the country, as reported by BTCRepublic. However, the law will go into effect in November 2024, and it will permit regulated mining firms to legitimately mine crypto assets after registering using a state database.
Legalizing crypto mining in Russia will not only increase tax revenue from mining for the country but it is also expected to accelerate investments and drive economic growth.
This move is just the first step taken by Russia toward adopting and leveraging cryptocurrency operations to evade economic sanctions facing the country.
There are several other steps taken by the government to evade sanctions that showed that Russia is turning away from the traditional finance system towards alternative payment solutions, such as cryptocurrency payments.
Russia is currently making plans to launch two new crypto exchanges – one in Moscow and the other one in St. Petersburg – to improve its foreign economic activities (FEA).
These exchanges will not only facilitate international trade but also strengthen economic cooperation with BRICS nations.
BTCRepublic mentioned that Russia began to trial crypto for international trade at the beginning of this month as a part of its strategy to circumvent payment difficulties caused by Western sanctions.
The Future Of Crypto Mining In Russia
Considering Russia’s recent move toward cryptocurrency for international trade, industry experts envisaged that cryptocurrency mining could grow by about 20-40% in 2024. However, the crypto industry may have to face the complexities associated with changing the regulatory environment.
For instance, as Russia plans new regulations in favor of its crypto adoption, the future of crypto mining remains in suspense as it may be affected by overregulation.
