Tag: crypto mining

Louisiana Joins Growing List of US States that Support Crypto Mining

Louisiana has become the latest US state to support cryptocurrency mining, as more regions in the country are warming up to digital assets. A newly signed bill is expected to protect the rights of crypto mining individuals and businesses, who can continue to operate in the state as long as they are in compliance with local regulations. The US crypto market evolving into the largest in the world with its industry size projected to reach the valuation of $23,220 million by the end of the year.

Rising Adoption of Crypto Mining Businesses in the US

The governor of Louisiana has signed a bill to foster the growth of businesses related to crypto mining activities in the state, while the state has banned the use of central bank digital currencies, or CBDCs. The state of Louisiana is among others in the US that are tailoring laws around crypto that could open job opportunities and revenue streams for the state treasury.

Bill HB 488 protects the rights of crypto mining individuals and businesses to continue operations but while being in compliance with local noise ordinances. Businesses conducting crypto mining on a commercial level have been directed to set up shops in the industrial zones located across the state, the bill notes.

Furthermore, the bill now restricts all foreign parties from controlling digital mining businesses.

Louisiana’s support for crypto mining could help generate revenue and also open job opportunities in the state, that reportedly houses over 4.6 million citizens. However, crypto mining is infamous for consuming loads of electricity, disrupting power supply for local residents.

The global cryptocurrency mining market was valued at $1.92 billion (roughly Rs. 16,017 crore) in 2022 and is reportedly projected to reach $7 billion (roughly Rs. 58,398 crore) by 2032. As per JP Morgan, the Bitcoin mining sector is reportedly is garnering interest from investors.

The states of Oklahoma, Arkansas, Kentucky, and Florida are taking similar pro-crypto mining steps, while the federal government is working on comprehensive legislation to oversee the overall crypto sector.

Crypto Mining in Other Countries

Owing to the electrical load crypto mining businesses put on power grids, several countries have decided to ban their operations. In May, Venezuela banned crypto mining and seized thousands of mining computers.

Norway has also cracked down on crypto mining businesses this year in April.

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Crypto Mining Banned in Venezuela, Thousands of Machines Seized

The crypto mining industry often finds itself under the scanner for being power-intensive and releasing greenhouse gasses into the environment. In a recent development, the South American nation of Venezuela has announced a ban on crypto mining. The massive load of electricity that is used for the mining several cryptocurrencies left the Venezuelan government concerned, which ultimately resorted to restricting these crypto mining operations all together. AlbertoNews, a Venezuelan publication was first to report on this development over the weekend.

The government of Venezuela has reportedly joined forces with the national electrical system to identify and disconnect crypto mining farms from the power grid in the course of the coming few days. The Venezuelan Ministry of Electrical Energy (MPPPE) has already kick started a power supply control plan to bust crypto mining clusters.

The enforcement of the crypto mining ban happened after the authorities of the South American nation confiscated 2,000 crypto mining firms in Maracay, Aragua state last week. The ministry of electricity there posted a video of these seized machineries on Instagram, informing its 26,500 followers about banning crypto mining due of the mammoth size of its power requirements.

The process of mining cryptocurrencies needs advanced complex mathematical equations to be solved on energy-intensive computers which need to always remain plugged to the electricity. As per a recently published blog by Just Energy, the energy consumption of all crypto assets combined is between 120 and 240 billion kilowatt-hours per year which makes for more than the combined electric usage of all of world’s data centres.

As far as Venezuela is concerned, it was already seeing power crunches for years, causing inconvenience to its population of reportedly around 29.12 million.

Some parts of the country have seen massive blackouts since 2009 and the situation took a turn for the worse in 2019, AlbertoNews said. The report also noted that the lack of maintenance and upgrades to the electrical system in Venezuela is the reason behind these blackouts. The situation is nowhere near being resolved in the South American nation which has already seen 219 protests against frequent power outages between January and March this year already.

Reacting to the development, Rafael Lacava, the governor of the Venezuelan state of Carabobo released a public appeal asking people to report crypto mining activities around their locations.

“If you, neighbour, see a house that you know, tell that person to turn off the farm, or else report it, because when they turn off the light, because you have to give light to a man so that he can earn some Reales (money), you are left without electrical service,” AkbertoNews quoted Lacava as saying.

In the past, Iran, Kosovo, and China alongside more nations have imposed bans on crypto mining.

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

ED Files Charges Against Chinese-Origin Directors, Others in Crypto Mining App Case

A charge-sheet has been filed under the anti-money laundering law against 299 entities, including 10 persons of Chinese origin, in an investigation linked to alleged duping of investors in the name of mining cryptocurrencies such as Bitcoins, the Enforcement Directorate said on Wednesday.

A special court in Dimapur in Nagaland on Tuesday took cognisance of the prosecution complaint filed under the Prevention of Money Laundering Act (PMLA), the federal agency said in a statement.

A total of 299 entities, including 76 Chinese-controlled entities in which 10 directors are of Chinese origin and two controlled by other foreign nationals, have been named as accused, it said.

The Enforcement Directorate’s (ED) case of money laundering stems from an FIR of the Cyber Crimes Unit of the Kohima Police.

The Kohima Police had booked various people under the Indian Penal Code and the Information Technology Act for allegedly duping gullible investors by promising astronomical returns by mining Bitcoins and other cryptocurrencies.

Police had said an app (mobile-phone application) by the name of “HPZ Token” was used by the accused to “cheat” the investors.

The ED said bank accounts and merchant IDs were opened by various “shell entities” having “dummy” directors for the purpose of “layering” of the proceeds of crime.

These funds were “fraudulently” received for illegal online gaming, betting and investment for Bitcoin mining, it claimed.

For an investment of Rs. 57,000, returns of Rs. 4,000 a day for three months were promised but money was paid only once, and thereafter, fresh funds were sought by the accused from the investors, the ED said.

Countrywide searches were undertaken by the ED in this case leading to the seizure of immovable assets and deposits worth Rs. 455 crore, it said.

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Bhutan Seeking Investment for $500 Million Fund for Green Crypto Mining in Himalayas

Bhutan’s investment arm and Nasdaq-listed company Bitdeer Technologies Group plan to seek investors for a fund worth up to $500 million (roughly Rs. 4,100 crore) that will be used to develop green crypto mining in the Himalayan kingdom.

Fund raising targeting institutional investors will begin at the end of May and the goal is to set up carbon-free digital mining that taps Bhutan’s abundant hydroelectric power, according to a joint statement Wednesday.

Mining is the least risky way for Bhutan to tap crypto opportunities and for now the nation will focus on Bitcoin, Ujjwal Deep Dahal, the chief executive officer of the investment arm, Druk Holding & Investments, said in an interview.

“It’s important for us to look at assets that are low volume, high value, or digital assets for that matter, and try to position ourselves in a way that we can be competitive globally over time to build our economy,” Dahal said.

Economic Strategy

Forest-laden Bhutan, sandwiched between China and India, has a population of about 777,000 and has long sought to diversify an economy reliant on hydropower revenues. Druk manages the government’s investments in traditional areas like stocks, bonds, technology, energy and real estate but also crypto mining and investment under what it calls a “future-facing” strategy.

Bitcoin miners race to solve complex mathematical puzzles using energy-hungry computing rigs, earning new supply of the token in return. That’s led to criticism of the environmental fallout when dirty fuels supply the power.

Miners were squeezed by a crash in digital-asset prices, rising energy costs and increased competition last year. Conditions have improved in 2023 amid a rebound in the crypto market.

Singapore-based Bitdeer, owned by Chinese entrepreneur Jihan Wu, is one of the top crypto miners by computer power and has one of the largest centers in Texas. The firm began trading on the Nasdaq last month after a long-delayed merger with a special purpose acquisition company finally closed.

Bitdeer expects to set up a 100-megawatt operation in Bhutan, with construction slated to start in the second quarter and be completed in July through September, a regulatory filing shows.

The company and Druk will also invest in the planned new fund, Bitdeer’s Chief Executive Officer Matt Linghui Kong said in an interview.

Druk ventured into crypto mining under a “sandbox” approach when Bitcoin was at about $5,000 (roughly Rs. 409,000), Dahal said. It also had some investments with the now bankrupt US digital-asset lenders BlockFi and Celsius Network but they were a small part of Druk’s portfolio and have been “settled,” Dahal added.

Bitcoin surged to a record high of almost $69,000 (roughly Rs. 56,43,772) in a pandemic-era crypto boom that peaked in 2021. The largest digital asset then sank below $16,000 (roughly Rs. 13,08,600) in 2022 but has since rebounded to about $28,500 (roughly Rs. 23,31,000).

Bhutan’s foray into the volatile and sometimes scandalous world of crypto is notable given that the nation is famed for using a “Gross National Happiness” index to gauge economic success. The gauge takes into account elements such as psychological wellbeing and ecological diversity to measure the standard of living.

© 2023 Bloomberg LP

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

US Government May Impose Disciplinary 30 Percent Taxes on Crypto Miners: Details

The US, in recent years, has emerged as a hotspot for crypto miners to establish their operations, especially after China imposed a blanket ban on all crypto-related activities in 2021. Given the environmental concerns and the power intensive nature of crypto mining, the US is mulling on imposing a punitive tax on companies and individuals indulging in crypto mining in the country. President Joe Biden’s government is considering a financial renumeration to be added to its federal treasury now that crypto mining is generating job opportunities in the US and is expected to boom in the times to come.

Soon, the US could ask crypto miners to pay a tax equal to 30 percent of the total energy cost that they consumed in mining cryptocurrencies. The idea has been laid out by US’ Council of Economic Advisors (CEA).

“One new proposal in this year’s Budget, the Digital Asset Mining Energy (DAME) excise tax, is an example of the President’s commitment to addressing both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of current practices for mining crypto assets (crypto mining, for short). After a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in crypto mining,” an official blog from the White House said on May 2.

In recent years, the process of mining Bitcoin has become more difficult with more advanced computers operated by mining companies and independent miners having joined the system.

Miners have to solve complex algorithms on advanced computers to mine a Bitcoin. Companies like Samsung and Jack Dorsey’s Block are working on special Bitcoin mining chips to make the otherwise power intensive process, energy efficient.

This complex process is responsible for being detrimental to the environment while also adding stress to the power grids of the regions where crypto mining has picked pace.

In November 2021, Electric Reliability Council of Texas (ERCOT) had estimated a fivefold increment in energy loads to support crypto mining and data centres.

Previously, several New York City-based businesspersons had also reached out to governor Kathy Hochul requesting her to deny permits regarding the conversion of the city’s old fossil fuel plants into crypto mining centres.

The US authorities have said that even if clean energy is used to facilitate crypto mining, it slashes the availability of clean energy for others, increasing their reliance on electricity produced by fossil fuels while also making that energy more expensive.

“Currently, crypto mining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society,” the blog noted.

The US estimates that it could churn $3.5 billion (roughly Rs. 28,639 crore) in the next decade via DAME tax.

The Vivo X90 Pro has finally made its debut in India, but is the company’s flagship smartphone for 2023 equipped with enough upgrades over its predecessor? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Taxes on Crypto Mining Power Use to Spike Next Year in US, Plan Outlined

The US government is considering several ways to balance its destabilised economy by reeling-in more funds into its financial systems. The crypto mining community in the US could face the burn of these tax hikes as the US government has proposed to raise the taxes on the electricity requirement for miners. The idea was part of US President Joe Biden’s annual budget speech on March 9. From amending policies around the crypto sector, the Biden administration is reportedly expecting to churn over $24 billion (roughly Rs. 1,96,700 crore) to the US economy.

The tax imposed on the electricity usage by crypto mining firms could now go as high as 30 percent of total cost of the electricity that was used to facilitate the mining process in the US.

While sufficing the US Treasury is among key reasons behind this proposal, the US is also looking to curb the excessive environmental impacts that have been known to be by-products of the energy-intensive crypto mining business.

“Firms engaged in digital asset mining would be required to report the amount and type of electricity used as well as the value of that electricity, if purchased externally. Firms that produce or acquire power off-grid, for example by using the output of a particular electricity generating plant, would be subject to an excise tax equal to 30 percent of estimated electricity costs,” the US Treasury disclosed in an official post.

The excise tax for digital asset mining firms would be executed gradually, in a decided time frame of three years. It would start at a rate of 10 percent in the first year, 20 percent in the second, and 30 percent thereafter.

Crypto mining is the process of generating newer crypto tokens. Miners are required to solve complex algorithms to validate transactions happening on the blockchain and generate newer tokens as rewards and by-products.

Before 2021, China was emerging as the hotspot for crypto miners. After China imposed a blanket ban on all crypto activities in September 2021, miners flocked to other favourable locations including Kazakhstan, Russia, El Salvador, as well as regions in the US like Texas and New York State among others.

The US was named as the world’s largest Bitcoin mining hub last year by Cambridge researchers. The crypto mining activities in the US in around 2021 reportedly made up for around 37 percent of the global hashrate, a metric used to measure the computing power used for mining.

With the job opportunities that the crypto mining business brings in, US’ Kentucky state has begun evaluating cost-effective ways to generate electricity to support the mining industry.

“An excise tax on electricity usage by digital asset miners could reduce mining activity along with its associated environmental impacts and other harms. The increase in energy consumption attributable to the growth of digital asset mining has negative environmental effects as well as increase energy prices for those that share an electricity grid with digital asset miners,” said the US government, justifying the tax hike it plans to levy on the crypto mining business.

The implementation of this rule has been slated for next year.

From smartphones with rollable displays or liquid cooling, to compact AR glasses and handsets that can be repaired easily by their owners, we discuss the best devices we’ve seen at MWC 2023 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated – see our ethics statement for details.



Check out our Latest News and Follow us at Facebook

Original Source

Grayscale Looking to Grab Bear Market Opportunities in Crypto Mining

Grayscale, the US-based crypto asset management firm, has decided to take advantage of the low prices surrounding the crypto mining industry. In recent months, the overall crypto sector valuation has dropped under the trillion-dollar mark in the backdrop of the US’ interest rate hikes leading to market pressure amid other reasons. Grayscale Digital Infrastructure Opportunities (GDIO) has decided to team up with staking infrastructure firm Foundry as part of its decision.

Crypto miners have been hit by shrunken profit margins after the prices of Bitcoin and other cryptocurrencies slashed substantially. Meanwhile, the power costs in several parts of the world rose in recent times, which too heavily impacted the crypto mining business.

As per a Bloomberg report, Bitcoin miners lost over $1 billion (roughly Rs. 8,200 crore) during the recent crypto crash.

“Our team has long been committed to lowering the barrier for investing in the crypto ecosystem – from direct digital asset exposure, to diversified thematic products, and now infrastructure,” a Coindesk report quoted Grayscale CEO, Michael Sonnenshein, as saying.

Meanwhile, Grayscale is not the only crypto player hoping to expand their mining teams and infrastructure. In September, crypto billionaire Jihan Wu reportedly set up a $250 million (nearly Rs. XXX crore) fund to buy crypto mining machines from distressed sellers. Wu is the founder of blockchain firm Bitmain.

The financial situation in the crypto mining sector led to concern-worthy situations for many players.

In June, the CEO and CFO of Compass Mining, a Bitcoin hardware mining company, stepped down from their respective positions. At the time, the company was facing allegations of not clearing utility bills at a facility in Maine, US.

The potential of the crypto sector, however, remains to appear promising. Last year, the market valuation of the crypto industry had surpassed the mark of $3 trillion (roughly Rs. 2,46,60,900 crore).

Hence, tech giants are not giving up on developing energy-efficient technologies to make crypto mining more lucrative.

Samsung, for instance, is moving briskly towards completing the development of its three nanometre (nm) foundry processing chip, that would be able to facilitate the mining of Bitcoin.

Samsung is making its chip as a ‘gate-all-around (GAA)’ offering. This essentially means that these chips will have current gates on all four surfaces, allowing more precise current control. This could increase the efficiency of BTC mining by 30 percent.

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Binance to Set Up Regional Office in Kazakhstan, Intends to Co-Develop Crypto Laws

Binance crypto exchange has signed an agreement with the government of Kazakhstan intending at fostering the crypto and Web3 culture. Kazakhstan’s Financial Monitoring Agency is looking to have Binance provide insights on framing laws around the crypto sector. Both the entities plan to target illicit activities around the virtual digital assets (VDAs) sector. As per The Block, Kazakhstan will house Binance’s regional headquarters and work on co-creating crypto regulations in the region.

Binance has been taking efforts to expand its crypto literacy and training programme among law-enforcement officers around the world. Its hub in Kazakhstan will usher this effort in the region, which houses a big number of crypto miners.

Under the ‘Global Law Enforcement Training Programme’, Binance will connect police officers in different parts of the world to skilled Web3 professionals who would run trainings on ways to combat potential crypto crimes as well as ways to tackle the aftermath.

Binance, which aims to become the most licenced crypto exchange in the world, entered the Kazakhstan market just two months ago, in August.

The company was granted the relevant licences by the Astana Financial Services Authority.

Back in May, Binance CEO Changpeng Zhao had met Kazakhstan president Kassym-Zhomart Tokayev.

At the time, the exchange giant had also entered an agreement with the Ministry of Digital Development of Kazakhstan to bolster Web3 boom.

Meanwhile, Zhao has shared his excitement on the development with his seven million Twitter followers.

Binance is also coordinating with Nigeria to establish a special economic zone, powered by the crypto sector. This crypto hub in Nigeria will make for the only such entity to exist in all of West Africa. This initiative is also being supported by the Nigeria Export Processing Zones Authority (NEPZA).

Affiliate links may be automatically generated – see our ethics statement for details.



Check out our Latest News and Follow us at Facebook

Original Source

Unlawful Crypto Mining Unearthed in Russia’s Oldest Prison, Warden Accused of Electricity Theft

Russia’s oldest prison, called the Butyrka, has emerged as a site for unlawful crypto mining activities. A prison warden belonging to a high rank has also been accused of stealing electricity from other parts of the prison, in order to facilitate crypto mining from within the facility. Built in central Moscow back in 1771, Butyrka is over 250 years old and houses up to 2,000 inmates. As for now, police investigation into the crypto mining activities inside the jail has been opened.

The matter came to light after mining equipment were spotted inside a psychiatric clinic run by the Federal Penitentiary Service at the prison.

The probing officers suspect that crypto generation from inside the prison has been going on since November 2021, Bitcoin.com said in a report.

Over 8,400 kW of electricity is estimated to have used between November 2021 and February this year, by people who were minting cryptocurrencies from inside the government facility. In a wider picture, the government of Russia actually paid for the electricity that was diverted to facilitate crypto mining operations in the prison.

As for now, details on the warden facing an inquiry and related accomplices in the case remain unclear.

The procedure of crypto mining is infamous for consuming huge amounts of electricity and disrupting the power supply of regions.

Several areas around the world including China, Kazakhstan, and Georgia’s Svaneti town have been crippled under power shortages caused by crypto mining.

Russia however, is looking to legalise crypto mining so that energy production in the required capacity is carried out without disrupting the lives and industrial activities of its citizens.

In January this year, Russian President Vladimir Putin had noted that the country does have advantages in the mining of cryptocurrencies.

Back in March, Russian Deputy Minister of Energy Evgeny Grabchak also batted in favour of ‘eliminating legal vacuum’ and regulating crypto mining during the first national conference of legal crypto miners in Russia’s Irkutsk region.

Grabchak has said that it is essential to identify appropriate mining sites in the country and manage electricity keeping crypto mining requirements in mind, especially at the regional levels.

Check out our Latest News and Follow us at Facebook

Original Source

Kazakhstan Tightens Noose on Crypto Miners With Power Consumption Report Requirements

Kazakhstan, that has been impacted with power shortages due to crypto mining, is bringing in new measures to deal with the issue. The government of Kazakhstan has mandated crypto miners to submit detailed reports justifying their power consumption requirements. Any mining business that wishes to begin operations in the Asian nation will have to hand-in this report thirty days before starting the work. The order has been published by Bagdat Mussin, Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan.

The Kazakhstan government has directed all crypto miners to provide “technical specifications” for their power needs before beginning operations. This includes details on type of mining equipment used, the customs cargo declarations for that equipment, and any investments planned within the year, an official statement outlined.

The rule is aimed at keeping the nation’s electricity supply available for common citizens and other industries. Since crypto mining is done on advanced computers, it gobbles up loads of electricity, disrupting supply in neighbouring areas.

Malik Olzhabekov, the vice minister of Kazakhstan’s digital development ministry has been assigned control of ensuring that this rule is obeyed by crypto miners.

Plagued by power outages, Kazakhstan has been strengthening its grip around crypto mining businesses.

In February this year, Kazakhstan President Kassym-Jomart Tokayev instructed authorities to increase the tax on electricity for crypto-mining outfits.

Crypto miners will also have to pay import charges for their equipment.

Last year, Kazakhstan became the world’s second-largest centre for Bitcoin mining after the United States, according to the Cambridge Centre for Alternative Finance, after major hub China clamped down on cryptocurrency mining activity last September.

All crypto mining farms had been asked to disclose themselves along with their records and other paperworks in Kazakhstan by March this year.

The Ministry of Energy of the Republic of Kazakhstan along with other law enforcement authorities are identifying, raiding, and busting illegal mining farms where cryptocurrencies are being generated illegally.

In March, the Financial Monitoring Agency of Kazakhstan registered 25 criminal cases and confiscated more than 67,000 pieces of crypto mining equipment worth about KZT 100 billion (roughly Rs. 1,478 crore) from illegal establishments.

Check out our Latest News and Follow us at Facebook

Original Source

Exit mobile version