Since the launch of cryptocurrencies over a decade ago, most governments have either embraced them or have resented them. While some have accepted them, one issue that has become a problem for them is that of cryptocurrency mining, which involves the use of electricity and other computational resources to achieve. For the purpose of this piece, we’ll take a look at a number of countries and how they have reacted to cryptocurrency mining.
According to data from Blockchain.com
Over recent years, China has maintained a firm stand on the trading of Bitcoin and other cryptocurrencies. As a matter of fact, the government of this country has placed a ban on the trading of cryptocurrencies and other coins. While the government of this country has maintained the stance, you will find it surprising to know that about 70% of the total coins in the market are mined in China. In addition to that, China happens to be home to the top mining pools in the world. One of the main reasons for this increase in the number of trading pools in the country is as a result of the massive surplus of electricity.
When compared to China, the government of Russia has taken a lax stand on the trading of Bitcoin and cryptocurrencies as general. While Bitcoin is not regulated in the country, the use of this cryptocurrency as a means of payment for goods and services bought is illegal. Interestingly, this is to change in the summer of this year as the DFA (Digital Financial Assets) bill is expected to take effect as of then.
The cryptocurrency mining industry is booming, and this is as a result of surplus electricity and the cold climate. Going by the recent reports, these mining companies may be made to pay fines in the future.
Recent reports coming from some of the media houses in the country reveal that the government of this country plans to take a stern stand on Bitcoin mining. This is simply because of the increased use of electricity in the last couple of months. The Energy Ministry of this nation of this country is of the opinion that the mining operations of these mining companies in the last couple of months are to blame for the 7% increase in electricity consumption in the country.
One of the main reasons why most companies have moved to Iran is because the government of this country is subsidizing the cost of electricity, thereby bridging the gap between consumers and electricity manufacturers. Homayoun Haeri, the Deputy Minister of Energy of Iran, have revealed that in the months to come, the mining companies will have to pay the same rate as power exports.
This is one country that has positioned itself as one of the crypto friendly nations in the world. The government of this nation has identified Bitcoin as a commodity. When it comes to mining, the government of this country takes a subtle stand on the operations of these companies.
photo source: © shutterstock.com by Yevhen Vitte photo source: © shutterstock.com by Mark Agnor photo source: © shutterstock.com by ivan_kislitsin
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