Demand for cryptocurrency mining equipment has increased 3-fold in the booming Russian market

Russia’s cryptocurrency mining sector is booming, with demand for equipment tripling in just one year. What is behind this rapid growth?

According to the latest a report From the Russian news agency PRIME, in the fourth quarter of 2024, Russia There was a three-fold increase in demand for industrial mining equipment and services compared to the same period of the previous year.

This growth is consistent with legislative changes foot By President Vladimir Putin in the summer of 2024. Under the new laws that came into force impact On November 1, 2024, companies and individual entrepreneurs can participate in cryptocurrency mining once they are officially registered in the National Register of Miners.

Under the new regulations, both legal organizations and private entrepreneurs can engage in mining after registering in the government database. Individual miners are not required to register as long as their monthly energy consumption does not exceed 6,000 kilowatt-hours. However, if they exceed this limit, they must officially register as business owners.

Sergei Bezdilov, Director of the Industrial Mining Association, noted that these regulatory amendments not only clarified the legal standards for mining, but also made it a reliable source of income, thus expanding the industry’s potential and trustworthiness within the economy.

However, as the industry grows, the Russian government advances New restrictions To manage energy consumption in various sectors. A draft decision published by the government proposes banning mining in some areas during the period from January 1, 2025 to March 15, 2031.

This ban will affect regions such as Dagestan, Chechnya and Ingushetia, as well as specific locations in Irkutsk, Buryatia and Zabaikalsky Krai, especially during periods of peak energy demand.

The government has cited energy shortages and varying prices as the main reasons for these restrictions. In subsidized areas with low electricity prices, miners have put enormous pressure on local power grids. Furthermore, on November 18, 2024, Russia imposed a 15% tax on Bitcoin mining profits.

Industry experts, including Bezdelov, suggest that investors consider allocating up to 5% of their portfolios to cryptocurrency mining. Bezdilov sees mining as a viable diversification strategy, offering stability and potential returns over the long term, even in a market known for its volatility.