Crypto mining company BitRiver, under sanctions, says that Russia may soon be able to mine more than the U.S. because of better rules
U.S. presidential candidates are discussing the importance of being a star in blockchain and crypto mining. Sanctioned crypto mining company BitRiver is optimistic that Russia will be able to beat the U.S. at Bitcoin mining by 2027.
Igor Runets, CEO of BitRiver, talked to the state-owned news outlet Prime about recent regulation changes that have made Russia stronger in the crypto sector.
Russia’s President Vladimir Putin signed new laws that make crypto mining legal early in August. These laws exempt low-energy mining businesses from restrictions. Runets says that this law strengthens Russia’s position in the Bitcoin mining business by letting people use energy-efficient rigs to mine Bitcoin legally.
Igor Runets said
“The recent legislation supporting mining in Russia has further solidified our country’s position in this field.”
The CEO of BitRiver says that Russia’s growth rate in crypto mining has caught up to that of the U.S. in the last year, making the relative difference smaller. He found that Bitcoin mining in Russia uses more than 2.5 GW of energy, while it uses more than 7 GW in the U.S.
Runets stressed that changing rules is making oil and gas companies rethink their plans, which makes it easier for them to work together with Russian crypto miners. He thinks the efficient use of related petroleum gas in data centers for mining will boost the economy and set Russia ahead of the U.S. in the next two to three years in the crypto world.
In April 2022, the U.S. government put BitRiver and some of its subsidiaries on a list of companies that should not do business with Russia because they worked in the technology sector of the Russian economy. This was done to cut Russia from the rest of the world’s banking system. At the time, the U.S. Treasury said that crypto-mining companies helped Russia make money from its natural resources. They said Russia had a “comparative advantage in crypto mining due to energy resources and a cold climate.”
