Sanctions failed to have a big impact on mining in Russia

  • 16:17 Oct 18, 2022
Sanctions failed to have a big impact on mining in Russia

The eighth package of sanctions adopted in October implied a ban on serving to Russian clients by crypto platforms. However, in the end, it failed to achieve the planned results.

It turned out that the vast majority of mining pools are located in the jurisdiction of China, and the sale of mined coins takes place on platforms that do not impose restrictions.

The actions of the EU affected 10% of Russian market participants who use Western platforms. Now there are plenty of opportunities to work legally, however, the EU is not likely to stop there and will take new measures. In this regard, it is necessary to accelerate the process of internal regulation.

At the moment, experts agree that mining in Russia continues to grow, despite all possible restrictions. For example, the capacity of mining farms located on oil deposits reached 85 MW (23% of the market) back in the summer. BitRiver, which has fallen under sanctions, sees a 50% increase in orders due to increased demand for services provided by customers from abroad.

However, BitRiver noted that:

If miners sell coins through individuals, the European trading platforms will require a residence permit in a Eurozone country.

According to Artem Yeremin, a representative of Chilkoot and Igor Pan (marketplace Finmir):

95% of the pools are in the jurisdiction of the PRC, and then the coins go to exchanges that do not use KYC, and these platforms have already managed to move all those who are interested in continuing to work. In addition, we should not forget the existence of over-the-counter transactions and the fact that the address in the blockchain cannot be taken away.

However, BitRiver representatives point out that it is still possible to destroy the industry in the country by introducing official and strict bans and observing their monitoring.

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