Russia Becomes Second Largest Crypto Miner After US As US Regulatory Landscape Shifts: Report

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Russia has reportedly become the second largest Bitcoin (BTC) miner of any country in the world, while the United States continues to hold the top spot.

According to a new report by Russian news publication Kommersant, Russia’s first climb to second place comes amid regulatory uncertainty in the United States that could soon shake up the rankings.

Russia has risen to second place in the world in cryptocurrency mining. The United States remains the leader. However, uncertainty in cryptocurrency regulation could trigger further market redistribution.

Kommersant also notes that, just like the United States, Russia also faces regulatory uncertainty in the crypto and mining industry.

However, in Russia, in general, the legal framework for minors has not yet been developed, experts point out. In addition, the risks of sanctions are increasing both vis-à-vis Russian actors and their counterparts abroad.

The ranking is based on the power consumption involved in crypto mining operations and cites data from Bitriver, Russia’s largest mining provider.

According to Bitriver CEO Igor Runets, the US mining industry is facing headwinds due to rising electricity prices, reduced profitability, fiscal issues and over-indebted mining companies.

Moreover, the vast majority of equipment was purchased on credit by American miners, so many overleveraged companies are on the verge of bankruptcy or have already gone bankrupt.

The Biden administration has proposed taxes equal to 30% of the costs of electricity used in digital asset mining operations.

If approved, the tax would come into force in 2024 and have a staggered implementation schedule with a rate of 10% in the first year, 20% in the second year and 30% in the third year.

Bitcoin is trading for $27,353 at the time of writing, down 1.1% in the last 24 hours.

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