According to local media reports, Russia has seen a 3x demand increase in Bitcoin mining equipment from 2023 to 2024. Mining in the country previously existed in a legal grey area, but it’s becoming more broadly accepted.
Although there are mining bans in several Russian regions, the government is noticeably becoming more interested in crypto.
Russia Has New Mining, New Crypto Interest
According to the report, crypto mining in Russia has benefited from relaxed regulatory standards, which transformed the sector from a legal gray area to a thriving business opportunity.
There has been a noticeable increase in the country’s mining output for months now, but this high demand helps quantify growth.
“Individuals can mine cryptocurrency without being included in the register, but within the limits of electricity standards (6,000 kWh per month). If this standard is exceeded, the citizen must register as an individual entrepreneur and apply for inclusion in the register,” claimed Sergey Bezdelov, director of the Industrial Mining Association.
Russia has had a complicated relationship with the crypto space recently. For one thing, President Putin has acknowledged Bitcoin’s use case in several key areas, and the country even advocated for other BRICS members to adopt the digital asset.
However, Russia also issued a temporary mining ban in October that substantially expanded months later. The rationale for these bans was simple: impacted areas have insufficiently developed electrical grids.
In the rest of Russia, crypto mining is still “a good source of additional income.” This demand reflects an intriguing trend in broader society, as local reports suggest growing trust from businesses and private citizens.
Also, latest research shows that Russia accounts for up to 26% of the traffic on international crypto exchanges. Russian citizens had the strongest presence on Bybit and more users than any other country on HTX and Bitfinex. In other words, this new interest is a clearly quantifiable statistic.
Ultimately, if Russia is becoming more amenable to crypto, then this mining industry is poised for growth. Even if several areas are off-limits for the foreseeable future, acceptance is growing at the grassroots and the highest levels of power.
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