A recent study by BitRiver showed that Russia ranks second in the world in terms of the amount of energy involved in cryptocurrency mining. In January-March 2023, the volume of capacity in Russia involved in mining amounted to 1 GW, reports Kommersant.
The leader of this list is still the United States with 3-4 GW of mining capacity. However, the uncertainty in the regulation of cryptocurrencies in the United States could trigger a further redistribution of the market. However, experts note that the legal framework for minors has not yet been developed in Russia, which could slow down the development of the industry.
Previously, the Russian Federation ranked third in the world in terms of the power involved in cryptocurrency mining. According to the Cambridge Center for Alternative Finance, at the end of 2021, Russia was ahead of the United States and Kazakhstan in terms of bitcoin mining capacity. While in 2020, 65% of total bitcoin hashrate came from China, the United States and Russia accounted for 7.2% and 6.9% respectively.
According to BitRiver experts, the positive dynamics in Russia are associated with the limitation of mining activities in Kazakhstan last year, and earlier in China due to a shortage of electricity. In particular, at the end of 2022, the Parliament of Kazakhstan introduced licensing for this type of activity and also provided for measures to protect the national energy system from unregulated mining.
However, there are factors that slow down the development of mining in Russia. In particular, the Mining Regulation Bill was submitted to the State Duma in November last year, but has yet to pass a single reading. Moreover, the risks of sanctions are increasing both vis-à-vis Russian actors and their counterparts abroad.
Previously, Yudaeva, a representative of the Central Bank of the Russian Federation, linked the legalization of cryptocurrencies to a financial pyramid.
