- The U.S Treasury is making use of sanctions in opposition to bitcoin mining in Russia.
- The sanctions search to impede the capability for people to obtain fiat funds, in addition to pc {hardware} by making use of stress on the availability chain and cost processors.
- According to the University of Cambridge, Russia is the third-largest nation on the planet for bitcoin mining.”
The United States Treasury Department released a press release today announcing new sanctions aimed at bitcoin mining in Russia for their ongoing war in Ukraine, as they are the third-largest bitcoin miner in the world according to the University of Cambridge.
The Treasury department stated that reliance on fiat payments and the importation of computer equipment makes Russia vulnerable to sanctions if the U.S focuses on hindering the companies providing those services.
Since government entities cannot stop the actual process of mining bitcoin, the U.S Treasury decided to utilize other attack vectors that weaken the supply chain.
“Treasury can and will target those who evade, attempt to evade, or aid the evasion of U.S. sanctions against Russia, as they are helping support Putin’s brutal war of choice,” said Brian Nelson, Under Secretary for Terrorism and Financial Intelligence. “The United States will work to ensure that the sanctions we have imposed, in close coordination with our international partners, degrade the Kremlin’s ability to project power and fund its invasion.”
One specific bitcoin mining firm, Bitriver, was addressed within the press launch completely. Founded in 2017, Bitriver has three places of work scattered throughout Russia. Legal possession was modified to a Switzerland-based holding firm in 2021. This firm has been designated as working within the “Russian Federation economy,” thereby making it and its ten Russian-based subsidiaries sanctionable.
In January, Vladimir Putin said that Russia has distinct benefits when it comes to bitcoin mining because it relates to the vitality surplus and local weather situations offered to them. The U.S Treasury agrees with the Russian president, stating “Russia has a comparative advantage in crypto mining due to energy resources and a cold climate.”
