Crypto

War and bear market force cryptocurrency miners to flee Russia

The largest online exchange in Japan closes cryptocurrency mining operations in Russia. The company said the move was prompted by the uncertainty caused by the war between Ukraine and Russia, as well as the downturn in the cryptocurrency market.

We are talking about the company SBI Holdings, which this week announced that it was leaving the Siberian region and stopping mining in Russia. Siberia is famous for its abundance of hydroelectric power and low temperatures suitable for mining.

A company spokesman said SBI’s withdrawal from Siberia was due to the uncertainty caused by the invasion of Ukraine. Moreover, he showed that bitcoin mining profits turned into losses in a bear market.

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Bitcoin mining

Now the company has announced its intention to sell its mining equipment and abandon all operations. However, SBI did not say exactly when it would stop production in Siberia.

But this does not mean that the SBI will completely leave Russia. Indeed, the spokesman said the brokerage would retain its banking arm in Moscow.

SBI Holdings may also feel pressure from the US. Last month, Japanese financial regulators warned cryptocurrency companies to cut ties with Russia in the wake of international sanctions.

Thus, American diplomats asked the country to stop all mining operations in Siberia. In response, 31 exchanges in Japan were ordered to disable services for Russian users.

The Japan Financial Services Agency has asked cryptocurrency exchanges to monitor any transactions involving individuals under sanctions. Thus, bitcoin miners in Russia suffered another blow.

A Bloomberg report reveals that SBI’s cryptocurrency business is suffering losses. According to the publication, in 2022 alone, the company has already lost $72 million as of June 30, four months after the start of the war.

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Original Source: https://www.lacryptomoine.net/portugais/la-guerre-et-le-marche-baissier-forcent-les…

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