Media report on the weak impact of sanctions on Russian miners
Most of the pools are located in Chinese jurisdiction, and the mined coins are sold on platforms that have not imposed restrictions
17.10.2022 - 07:30
325
2 min
0
What’s new? The eighth package of EU sanctions, adopted in early October, completely banned crypto platforms from providing services to customers from the Russian Federation, regardless of the amount of assets. In particular, Russians cannot open accounts and crypto wallets in companies licensed in EU countries. However, as Kommersant journalists found out, the new restrictions have little effect on Russian miners.
News on the Kommersant website
How have the sanctions affected miners? According to the experts interviewed, only 10% of Russian traders use Western infrastructure to sell mined coins. At the moment, miners have many opportunities to continue working legally, but if sanctions are expanded, it is necessary to accelerate the introduction of regulation on the territory of Russia.
According to Artem Yeremin, a spokesperson for CHILKOOT, a mining company, up to 95% of the pools where Russian miners work are located in Chinese jurisdiction. This makes them inaccessible to sanctions, besides, after mining, miners have the opportunity to sell coins on exchanges that do not comply with EU sanctions, as well as by conducting over-the-counter (OTC) transactions.
In July, the United States urged Japan to increase pressure on local crypto exchanges and mining companies to stop financial transactions with Russia. At the end of August, Japan’s largest online broker SBI Holdings Inc. ceased its mining activities in Russia and severed ties with BitRiver, a data center operator hit by US sanctions.
In August, the capacity of Russian bitcoin mining farms operating on associated petroleum gas reached 85 MW. The total power capacity of mining farms in oil fields amounted to 23% of the entire cryptocurrency mining market in the country.
At the end of September, the Bank of Russia and the Ministry of Finance agreed on the position on the regulation of cryptocurrency mining. Deputy Anatoly Aksakov noted that the draft law would be submitted for consideration in the near future.
Useful material?
Telegram 
Twitter Market
Analysts note that from 2024 to 2030, tokens worth $155 billion will be unlocked
May 17, 2024
Technologies
The new mechanism has already made it possible to calculate over tens of millions of fraudulent addresses
May 16, 2024
Incidents
The amount of damage amounted to $25 million in cryptocurrencies
May 16, 2024
Market
FTX customers will be compensated in cash, unlike Mt. Gox and Gemini customers who will receive cryptocurrencies
May 16, 2024
Technologies
It is available to crypto wallet users worldwide as an additional feature
May 15, 2024
Market
The ex-official known for his initiatives to explore the potential of blockchain in the financial system has joined the board of directors of a fintech company
May 14, 2024
Cryptocurrency rates
-
Bitcoin
$66 426
BTC
+0.93%
-
Ethereum
$3 085.67
ETH
+4.61%
-
BNB Smart Chain
$580.55
BSC
+1.12%
-
Ripple
$0.521735
XRP
+1.77%
-
Dogecoin
$0.152986
DOGE
+1.9%
-
Cardano
$0.479002
ADA
+6.35%
-
Polkadot
$7.17
DOT
+4.71%
-
Bitcoin Cash
$463.27
BCH
+4.4%
-
Litecoin
$83.12
LTC
+1.93%
-
Stellar XLM
$0.107991
XLM
+2.62%