International Regulation

Proposed Russian Crypto Ban May Push Miners West


If Russia follows through with proposed plans to ban cryptocurrency mining, miners may be forced West

Russia’s central bank is calling for a ban on several cryptocurrency operations, including mining.
The report comes months after the energy ministry threatened to impose tariffs on miners for energy usage
Cryptocurrency miners may be forced out of Russia if the country’s central bank gets its way.

The government entity called for a ban in a report published Thursday, citing concerns that digital assets could undermine financial stability.

The move could strike a major blow against the world’s third-largest mining hub, according to data from the University of Cambridge — rising in the ranks after China banned the practice in June 2021.

“I don’t have a confident view on whether Russia will undertake a China-style mining crackdown,” said Nic Carter, partner at crypto venture capital firm Castle Island Ventures. “But if they do, it will definitely affect Russian miners — many of whom are using natural gas and coal.”

The report is only the latest step Russia has taken in recent months to enforce tighter regulations on digital assets.

Following China’s ban, Russia’s energy ministry said it would consider tariffs on miners. The ministry estimated that energy usage increased 158% year-over-year in the Irkutsk region due to an increase in mining operations, according to a report at the time.

Amid the Russian concerns, Kazakhstan, the second-largest mining territory, is currently grappling with increasing unrest and ensuring internet outages, leaving some experts to wonder where miners will go now. Prior to Thursday’s report, Carter speculated that miners in Kazakhstan might be headed for Russia. Now he’s not so sure.

“Ultimately, it looks like the only ‘safe’ place to mine is the US or Canada, and even then on a state-by-state or province-by-province basis,” he said.

Though China’s ban triggered a sharp selloff, markets were unphases by the Russia news, with Bitcoin trading 2.4% higher over the last 24 hours as of publication.

“Russia only hosts a little more than 10% of Bitcoin’s current mining power,” said Anto Paroian, chief operating officer at crypto investment firm ARK36. “When and if the ban is finally enforced — which could still take some time — Russian miners may be forced to move their operations elsewhere but any effect of this development on bitcoin’s price will be extremely short-lived.”

Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt

Support CryptoCaster with any amount of Bitcoin by copying and pasting our Unstoppable Domain; villagewest.crypto in your sending wallet or crypto coin exchange.

Your contribution support will help in our growth, coverage, and global presence. CryptoCaster is a decentralized publisher “Covering a Global Evolution Re-defining Mediums Of Exchange”. We will continue to upgrade and create impactful sections to our lineup.
Any amount, as often as you can contribute will be greatly appreciated.
Every contribution, however big or small, is so valuable for our future. Thank you for your consideration and support!
Member of Global Meta Media Consortium℠

You may also like