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According to a Report, Demand for Mining Equipment in Russia Has Decreased as a Result of Fears of a Possible Ban

Since the Bank of Russia called for a ban on the minting of digital currency and other crypto activities, platforms that offer ads for mining hardware have seen a drop in demand. While mining may be authorised in the future, miners may expect increased electrical prices.

On the Russian Market for Mining Chips, Supply Outnumbers Demand.

Russian online markets have noticed that mining hardware is now more frequently provided than sought. The trend started after the Central Bank of Russia (CBR) issued a consultation document last month proposing a total ban on cryptocurrency operations, including mining, citing concerns to financial stability and investment risk.

According to RBC, a prominent online platform recently reported that the number of listings for coin minting equipment for sale grew in January, but demand fell. Marvel Distribution, one of Russia’s major retailers of these products, has also noticed a decrease in video card transactions.

According to one of the report’s sources, offers of video cards grew by 12% in January over December, while demand for GPUs fell by 4%. Last month, supply of mining rigs climbed by 18%, while demand fell by 9% from the previous month of 2021. ASIC listings increased by 17%, but searches for the specialist hardware decreased by 27%.

A representative from another marketplace corroborated the drop in demand, stating that the CBR study has marked a turning point in customer behaviour. Despite President Putin emphasising Russia’s competitive advantages as a mining destination, the monetary authority has been unable to obtain backing from other organisations.

Meanwhile, the federal government advocated a different strategy, focusing on regulation rather than outright prohibition of cryptocurrencies. Deputy Prime Minister Dmitry Chernyshenko signed a regulatory framework for the sector at the end of January, but it initially excluded crypto mining.

Chernyshenko later authorised many key ministries and regulatory authorities to add mining to the document, according to a recent article by the daily Izvestia.

Industry experts have expressed reservations about whether it is technically possible to prevent the extraction of digital currencies. Energy-rich Russia is one of the world’s most important mining hotspots, and its importance has grown since China initiated a crackdown on the industry in May.

Officials in Moscow have been calling for mining to be recognised as a corporate activity, taxed appropriately, and miners to be charged higher electricity prices.

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