Bitfarms plans to build a mining farm in Washington, whose equipment will work with hydroelectric energy. The Russian Deputy, Andrei Lugovoy, considers that the legal limbo weighing on Bitcoin mining lends itself to tax evasion and corruption.
China still feels the effects of the measures that the government took against Bitcoin mining. Despite the ban on that business activity, there remain many clandestine miners working in the Asian country. The authorities believe that there might be thousands of them using increasingly sneaky methods.
A government official from the Jiangxi province, a member of the Communist Party, recently went to prison. He took advantage of his position to do illegal activities related to cryptocurrency mining with impunity.
To keep its good name, the Party decided to expel the official and send him to jail. The Marxist organization explained that he was supporting/endorsing some firms to continue their activities undisturbed.
Bitfarms Announces It Will Use Hydroelectric Energy
Canadian company of Argentine origin Bitfarms recently announced a new project to build a mining farm in Washington. They said that their equipment would work with hydroelectric energy to contribute to using ecological energy sources.
That company has advanced mining projects in Argentina, particularly in the province of Córdoba. Now, they are planning to build a new farm in Washington, which will consist of about 6,200 next-generation mining machines.
Russian Duma Initiates a Regulatory Process for Digital Mining
The authorities of the Russian Federation seem ready to break the legal limbo weighing on Bitcoin mining. For that reason, they formed a work team to address the regulation of digital mining. Some regulators consider that the legal void allows those companies to evade taxes.
The president of the state Duma, Vyacheslav Volodin, announced this week that they would do that work. He ordered the creation of the abovementioned working group at the request of Deputy Andrei Lugovoy of the far-right Liberal Democratic People’s Party.
Lugovoy considers that Bitcoin mining has become an unavoidable issue since the legal limbo lends itself to many problems. Apart from tax evasion, he believes that the activity also involves corruption. Russia is one of the mining strongholds of the world, so the influx of Chinese miners increases the hash rate within its borders.
The Influx of Chinese Bitcoin Miners Puts Kazakhstan’s Energy Supply at Risk
The implications of the ban on Bitcoin mining in China make the situation in Kazakhstan more acute. That country has received one of the highest numbers of displaced miners from the Asian country. The main reasons for that are the low cost of energy, business-friendly policies, and proximity.
However, the situation is getting out of control for the authorities of the Eurasian country. A large number of miners within its borders is putting the country’s energy supply capacity at risk.
For that reason, Murat Zhurebekov said that they should not postpone addressing the issue of what mining means for energy supply. The number of miners consuming energy in Kazakhstan could be twice as much as those legally registered to conduct their operations.
The growing importance of Bitcoin in the economy has led miners to look for ways to do their activity more effectively. In the case of those migrating to other countries, they look for cheaper energy and favorable regulations.
By Alexander Salazar
