Crypto Mining in Russia and Risk Factors

Crypto mining gained popularity in the Russian Federation. However, there are certain risk factors. Interestingly, the country’s major cryptocurrency law “On Digital Financial Assets” does not mention the term mining at all. Russian President Vladimir Putin signed this bill into law this summer. Notably, the law “On Digital Financial Assets” is regarded as a glossary to crypto.

Nevertheless, there is another bill that will likely cover the topic of crypto mining. This bill most likely will provide a regulatory framework for the crypto industry in Russia. It is desirable, wait for several months, to learn more about the bill “ On Digital Currency”.

According to the preliminary information, lawmakers will approve this bill in December. This bill has the potential to affect the industry in the long run. However, without regulations, it will be difficult to develop crypto mining in the country.

Crypto mining and GPU sales

It is worth mentioning that, crypto mining is a profitable business. Moreover, people are willing to invest in mining.

Interestingly, the graphics processing unit (GPU)’s sales are surging in the midst of an increase in remote work as well as the apparent growth in cryptocurrency mining in the country.

According to the information provided by retailers, crypto mining-related sales of graphics cards in the country increased in August 2020. Notably, last month GPU sales rose by 49% and this fact once more shows that people would like to spend money on graphics cards.

This is not the end of the story, as this information comes in line with a two-fold increase in sales by the tech giant Nvidia on a year-on-year basis. PC components’ sales soared over the period of June to August by 470% compared to the same period of time in 2019.

Authorities should work with crypto companies to develop crypto mining in the country.