Bitcoin [BTC] and other cryptocurrencies have played a vital role in the Russia-Ukraine war. As this war dived into its third-month governments from across the globe have been strengthening the sanctions imposed against Russia. In a similar attempt, the US government decided to slap the Vladimir Putin-led country with brand new sanctions on Bitcoin miners in the region.
Putin doesn’t seem to be taking a break from displaying vengeance against Ukraine. The massive bloodshed and destruction were prolonged. As a result, several nations protested the war by trying to dement the financial power that Russia entailed via sanctions. Cryptocurrencies were also included in them. After exchanges were directed to block Russian users, now, the US Department of the Treasury was throwing a jab at Bitcoin miners.
As per reports, the US government reportedly considers Bitcoin mining as a threat to the existing sanctions. This has been a major concern for the entire globe. Ergo, the US government was eyeing the Bitcoin mining market in Russia.
Additionally, BitRiver a prominent mining giant in the firm was one among the platforms that were slapped with sanctions. The country is reportedly the third-biggest destination for mining Bitcoin.
Russia’s safe haven, Bitcoin mining busted?
Russia has been yearning to legalize Bitcoin mining. Several leaders in the country have been pushing the government to give crypto mining a legal stature as the region has natural resources in abundance. Under Secretary for Terrorism and Financial Intelligence, Brian Nelson pointed out that,
“Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions.”
Bitcoin mining rewards its miners handsomely. Therefore, an array of them veers into the industry. Russia is currently disabled from most of its monetary resources. Bitcoin mining could have been a promising source of income. However, with the US’s clampdown, this could take a huge hit.