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Crypto mining news digest

This week’s biggest crypto mining news — 02/11

Russia to recognize crypto as currency, NY Mayor opposes Bitcoin mining, and more on this crypto mining news digest

#1: Russia moves to recognize crypto as a form of currency

The Russian government and the country’s central bank have reached an agreement to draft legislation or amend existing laws recognizing crypto as a form of currency, according to a statement Tuesday.

Photo by Michael Parulava on Unsplash

The agreement is a significant reversal after the Bank of Russia last month proposed banning miners and several other crypto operations over concerns that they could endanger the country’s financial system.

Russia’s regulation will seek to integrate a mechanism for the circulation of digital currencies into the country’s financial system while ensuring control over credit institutions’ cash flows, a rough translation of an accompanying draft document reads.

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#2: New York Mayor opposes Bitcoin mining

Photo by Pierre Blaché on Unsplash

Eric Adams, New York City’s cryptocurrency-friendly mayor, has bewildered the Bitcoin community after voicing his opposition to crypto mining during a local government budget hearing with elected officials in Albany:

“Support cryptocurrency, not crypto mining.”

New York State Assembly member Dr. Anna Kelles praised Adams for making the distinction between crypto and the mining of it. She added that New York City could become the crypto capital of the U.S. without supporting environmentally damaging crypto mining.

Several legislators expressed their concerns regarding Adams’s wholehearted embrace of cryptocurrencies.

Bitcoiners slammed Adams for his “shameful” comment, arguing that one cannot be pro-crypto while simultaneously opposing mining.

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#3: Feds seize $3.6 billion in BTC stolen from Bitfinex hack

The Justice Department announced it seized more than $3.6 billion in allegedly stolen bitcoin linked to the 2016 hack of Bitfinex.

Photo by Kanchanara on Unsplash

Officials said they arrested Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31. The couple is scheduled to make their initial appearances in federal court later in the day.

Authorities accuse the pair of trying to launder the proceeds of 119,754 bitcoin that were stolen from Bitfinex’s platform after a hacker breached Bitfinex’s systems and initiated more than 2,000 unauthorized transactions. Prosecutors allege that the transactions sent the stolen bitcoin to Lichtenstein’s digital wallet.

Officials said they were able to seize more than 94,000 BTC, which was valued around $3.6 billion at the time of seizure. In all, the total stolen BTC is presently valued at approximately $4.5 billion, according to the agency.

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#4: Kazakhstan proposes power price hikes and taxes targeting crypto miners

On Feb. 4, Kazakhstan’s First Vice Minister of Finance, Marat Sultangaziyev, proposed a worth increase from $0.0023 per Kwh to $0.01 (round a 335% increase) particularly for crypto miners.

Photo by Snowscat on Unsplash

He additionally proposed a tax on every particular person graphics card (GPU) and each bit of apparatus wanted for crypto mining. He likened the tax-per-video card to the way in which casinos are taxed for every desk they run, whether or not or not the desk is energetic.

The third a part of his proposal was to take away mining hardware from an exemption on value-added tax (VAT).

BIT Mining, a big Bitcoin mining operation that moved from China to Kazakhstan final July, acknowledged in January that the political unrest would not force it to move its operations elsewhere. Nonetheless, that was earlier than the facility and tax will increase have been proposed.

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