What happened?
The number of registered crypto mining firms in Russia has increased tenfold over the past six months, according to a senior Moscow lawmaker. More than 1,000 firms are now legally involved in crypto mining, following a new law requiring businesses using over 6,000 kWh of electricity per month to register. This significant growth has led to claims that crypto is becoming the future for Russian businesses.
Who does this affect?
This development primarily affects crypto mining companies operating in Russia, who are now required to comply with regulatory standards. It also impacts lawmakers and regulatory bodies, as they see increased revenues and data from the newly registered firms. Finally, local communities and power grids are affected, as proper regulation aims to reduce previous issues like electricity outages caused by unregistered mining activities.
Why does this matter?
This surge in registered crypto mining firms has significant market implications, as Russia is now the second-largest Bitcoin mining nation, only behind the USA. The increase in legal recognition and regulation of mining activities could lead to more stable and transparent growth in the crypto sector. Additionally, the regulation might attract more investment into Russia’s crypto and AI sectors, strengthening its position in the global market.