- Russia becomes the world’s second-largest cryptocurrency mining country in 2023.
- Russia’s mining capacity surged to 1 gigawatt in Jan-March 2023.
- The use of cryptocurrencies in Russia is limited due to strict regulations but reportedly used for sanctions evasion.
According to a report by Kommersant, a leading business publication, Russia has emerged as the second-largest nation for cryptocurrency mining in 2023. This information was disclosed by Bitriver, the largest Bitcoin mining provider in Russia.
Although the United States still holds the title for the largest cryptocurrency mining capacity in the world, with a capacity of 3-4 gigawatts, Russia has also made significant strides in this field. In the period of January-March 2023, Russia’s mining capacity surged to 1 gigawatt, as reported by Bitriver, the leading bitcoin mining provider in Russia.
Russia’s recent ascent to the second-largest cryptocurrency mining country has led to Kazakhstan dropping down to the ninth spot, as per the report by Bitriver cited in Kommersant. Kazakhstan implemented restrictions on crypto mining activities in 2022.
Notably, China, which had banned crypto mining in 2021, did not make it to Bitriver’s top 10 list.
Moreover, the use of Bitcoin and other cryptocurrencies in Russia is currently limited due to strict regulations imposed by the government. In 2020, President Vladimir Putin’s law on digital financial assets legalized cryptocurrencies but prohibited their use as a means of payment for goods and services. As a result, the adoption of cryptocurrencies as a mainstream payment method in Russia has been slow.
Despite the restrictions on cryptocurrencies in Russia, there have been reports of their use in the country’s sanctions evasion strategies. In February, the United States blacklisted a Bitcoin and an ether address, which it suspected might have been used to facilitate Russian defense equipment sales in foreign countries. This suggests that despite the regulatory hurdles, some individuals and entities in Russia may still be using cryptocurrencies for illicit activities.
