Tuesday, December 6, 2022
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US bans crypto mining firm doing business in Russia

The US Treasury Department has banned crypto mining firm BitRiver because of its Russia business. BitRiver, one of the largest data center service providers in the crypto industry, provides energy sources, mining facilities and solutions to bitcoin miners around the world. These include the miners of Eastern Europe and Russia.

In North America, Eastern Europe and Russia after China banned crypto mining last year crypto miners number has increased. The International Monetary Fund warned in a report earlier this week that crypto mining could provide a way for countries like Russia and Iran to evade sanctions. It was said in the report that these countries can invest such energy resources in crypto mining which they are not able to export. After this the Treasury Department has taken this action. Russia and Ukraine have been at war for more than two months and many countries have imposed harsh sanctions on Russia for attacking Ukraine.

The Treasury Department has a Press release “Through large server farms that sell virtual currency mining capacity, these firms are helping Russia tap its resources. However, mining firms rely on imported computer equipment and payments in normal currency, and this is the reason why these firms have been able to make use of their resources,” it said in a statement. Because of which restrictions can be imposed on them.” Last year, bitcoin mining generated about $1.4 billion in revenue per month. Of this, about 11 percent is estimated to go to the miners of Russia.

Swiss firm BitRiver has not commented on this. The ban on this firm could have an impact on the crypto industry outside Russia as well. This could reduce the computing power of bitcoin mining worldwide. Bitcoin mining consumes more electricity. Because of this, some countries including China have banned crypto mining. Last year in Texas, the US, the supply of electricity was affected due to bitcoin mining. After this, the residents of Texas were strongly opposed to crypto mining.

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Two Wheeler

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