Russia is now 2nd biggest crypto mining hub: Report

This year Russia showed significant Inclination toward the Crypto mining sector and now stands at second rank by the mining hash rate contribution.

Nowadays, Russia is becoming a crypto-friendly country. Before Q1 2022, Russian government agencies, especially the Bank of Russia, were planning to bring a blanket ban on cryptocurrencies but the whole game changed when the majority of the Western countries imposed international financial sanctions on this country, as a part of Russia vs Ukraine conflict.

Before 2023, Russia was the third biggest country by crypto mining activities, just after the United States (US) & Kazakhstan. 

Because of the better crypto-friendly laws & rules, Russia is now the second biggest region for crypto mining activities.

This month, Russia will pass a crypto regulation bill, to bring more impactful & strict laws to prohibit the engagement of bad actors’ activities from this innovative sector.

The first crypto regulation framework officially came into effect in Russia on 1 Jan 2021 but there was no regulatory framework for the crypto mining sector. But the newly proposed laws & rules include regulation of crypto mining companies’ regulation.

Under the new measures, all the crypto companies are required to pay taxes & report all their revenue. Failing to pay crypto gain tax from trade & mining will lead to jail punishment.

Along with crypto adoption, the Russian Central Bank is also working on the Central Bank Digital Currency (CBDC), or say national digital currency.

With the CBDC, Russia aims to bypass the need for the US dollar and process cross-border payments easily in real time.

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