Demand for Crypto Mining Equipment in Russia Triples

The cryptocurrency mining industry in Russia is booming, with demand for equipment tripling in just one year.

Azcnews Demand For Crypto Mining Equipment In Russia Triples

The Russian cryptocurrency mining industry is booming, with demand for equipment tripling in just one year. What’s behind this rapid growth?

According to the latest report from the Russian news agency PRIME, in the fourth quarter of 2024, the demand for industrial mining equipment and services in Russia tripled compared to the same period last year.

This growth is linked to changes in the law issued by President Vladimir Putin in the summer of 2024. According to the new regulations, which will come into effect from November 1, 2024, businesses and individuals can engage in cryptocurrency mining after officially registering on the national miner register.

According to these regulations, legal entities and private entrepreneurs are allowed to mine cryptocurrencies after completing registration with a government agency. Individual miners do not need to register if their monthly electricity consumption does not exceed 6,000 kWh. However, if they exceed this threshold, they are forced to register as business owners.

Crypto Mining Activity In Russia Is On The Rise
Crypto Mining Activity In Russia Is On The Rise

However, as the industry grows, the Russian government has also begun to introduce new restrictions to manage energy consumption in many areas. A draft resolution from the government proposes to ban cryptocurrency mining in certain regions, effective from January 1, 2025, to March 15, 2031.

Read more: How Did Toncoin Outperform Bitcoin in 2024?

The ban would affect regions such as Dagestan, Chechnya, and Ingushetia, as well as specific locations in Irkutsk, Buryatia, and Zabaikalsky Krai, especially during periods of peak energy demand.

The Russian government has cited energy shortages and price discrepancies as the main reasons for the restrictions. In regions with low-subsidized electricity, cryptocurrency mining has put a lot of pressure on the local power grid. Additionally, on November 18, 2024, Russia introduced a 15% tax on profits from Bitcoin mining.

5.0/5

(1 vote)

Latest

Azcnews Breaking Zklend Loses $4.9m In Starknet Exploit

News | Editor Choice | Policy & Regulations

zkLend Loses $4.9M in Starknet Exploit, Offers Hacker 10% Bounty for Return of Funds

Decentralized lending protocol zkLend has fallen victim to a $4.9 million exploit on the Starknet network, marking a resurgence in crypto-related hacks after a decline in January.

Azcnews Breaking Us And Uk Refuse To Sign International Agreement On Ethical Ai

News | AI | Editor Choice

US and UK Refuse to Sign International Agreement on Ethical AI

The US and UK declined to sign an international AI agreement, citing concerns over excessive regulation, while the summit emphasized ethical AI development, innovation, and global cooperation.

Azcnews Breaking Bitcoin’s Price Fluctuation And The Role Of Otc Transactio

News | Bitcoin | Editor Choice

Bitcoin’s Price Fluctuation and the Role of OTC Transactions

Bitcoin briefly dropped to $94,900 last night before recovering slightly. While market sentiment and institutional strategies often dominate discussions on Bitcoin’s volatility, the impact of over-the-counter (OTC) transactions remains an overlooked but crucial factor.

Azcnews Breaking Bnb Chain’s Four.meme Suffers $183k Exploit In Security Breach

News | Editor Choice | Memecoin

BNB Chain’s Four.Meme Suffers $183K Exploit in Security Breach

The memecoin launch platform has temporarily suspended the creation of new liquidity pools as it works to resolve a recent exploit.

Azcnews Breaking Litecoin Etf Has A 90% Chance Of Sec Approval

News | Altcoin | Editor Choice | Policy & Regulations

Litecoin ETF Has a 90% Chance of SEC Approval

Bloomberg ETF analysts suggest that Litecoin's regulatory filings have been acknowledged, indicating that the SEC likely classifies it as a commodity.