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Sanctioned crypto mining firm BitRiver suggests Russia could soon outpace the U.S. in mining due to favorable regulations.
As U.S. presidential candidates increasingly highlight the importance of blockchain and crypto mining leadership, sanctioned crypto mining firm BitRiver is optimistic about Russia‘s potential to surpass the U.S. in Bitcoin (BTC) mining by 2027.
In an interview with state-owned news agency Prime, BitRiver CEO Igor Runets highlighted recent regulatory developments that have bolstered Russia’s standing in the crypto sector.
In early August, Russia’s President Vladimir Putin legalized crypto mining by signing new laws that exempt low-energy mining operations from restrictions. This legislation allows citizens using energy-efficient rigs to legally mine Bitcoin, further solidifying Russia’s position in the industry, according to Runets.
“The recent legislation supporting mining in Russia has further solidified our country’s position in this field.”
Igor Runets
The BitRiver CEO claims that Russia’s growth rate in crypto mining has caught up with that of the U.S. in the past year, narrowing the gap in absolute figures. Per his calculations, Bitcoin mining in Russia currently consumes over 2.5 GW of energy compared to more than 7 GW in the U.S.
Runets emphasized that the evolving regulatory environment is prompting oil and gas companies to reevaluate their strategies, fostering collaboration with Russian crypto miners. He expects the effective utilization of associated petroleum gas through data centers for mining will provide a significant growth stimulus, positioning Russia to outpace the U.S. in the crypto landscape within the next two to three years.
In April 2022, the U.S. government added BitRiver along with several of its subsidiaries to its sanctions list for operating in the technology sector of the Russian economy in an effort to isolate the country from the global financial system. The U.S. Treasury said at the time that crypto mining companies helped Russia monetize its natural resources, noting that Russia had a “comparative advantage in crypto mining due to energy resources and a cold climate.”