It has been nearly two months since Russia started the war against Ukraine, and various countries have imposed sanctions on Russia and condemned the atrocities of the Russian military. The United States today (21) announced a new round of sanctions against Russia, mainly targeting more than 40 entities and individuals who assisted Russia in evading sanctions, including the cryptocurrency mining company BitRiver. This is the first time the United States has sanctioned cryptocurrency mining. company.
The U.S. Treasury Department explained that BitRiver was included in this wave of sanctions because cryptocurrency mining companies can help Russia monetize natural resources.
Founded in 2017, BitRiver, as the name suggests, uses hydroelectric power for its mines. According to its website, the mining company employs more than 200 full-time employees across three offices in Russia. In this wave of sanctions, 10 Russian subsidiaries of BitRiver were not spared.
The companies help Russia monetize its natural resources by operating large mining farms that sell cryptocurrency mining power internationally, Brian E. Nelson, the U.S. Treasury Undersecretary for Terrorism and Financial Intelligence, said in a release.
The statement continued that Russia has an advantage in cryptocurrency mining due to its huge energy resources and unique cold climate. However, mining companies rely on imported mining equipment and fiat payments, making them less resistant to sanctions.
In January, Russian President Vladimir Putin said at a government meeting that we also have a certain competitive advantage in this (cryptocurrency) space, especially when it comes to so-called mining, I mean Russia has a surplus of electricity and trained personnel.
According to data from the University of Cambridge, Russia is the third largest bitcoin mining country in the world. U.S. authorities believe that revenue from the cryptocurrency mining industry undermines the effect of sanctions, and the U.S. Treasury Department said it will ensure that no assets can help Putin’s regime offset the impact of the sanctions.
Recently, the International Monetary Fund (IMF) warned in a report that Russia, Iran and other countries may eventually use unexportable energy resources to mine cryptocurrencies to generate income, thereby evading sanctions.
Post time: May-13-2022