Leading Japanese Online Broker SBI Exits Crypto Mining in Russia – Bitcoin News

Japan’s largest online brokerage firm SBI Holdings is closing down its crypto mining operations in the Russian Federation. With the future of such investments increasingly uncertain due to the ongoing conflict in Ukraine and falling mining profits, the financial firm said it plans to sell its equipment and exit.

Japan’s SBI broker to completely exit Russian mining

Access to low-cost electricity and favorable climatic conditions make Russia an attractive destination for cryptocurrency miners when China hits the industry in May 2021. However, sanctions imposed by Moscow over its decision to attack Ukraine this year have hit bitcoin mining, along with other Russian industries.

Switzerland-based Bitriver, one of Russia’s largest mining data center operators, was targeted by the U.S. Treasury Department this spring. The US company Compass Mining then attempted to liquidate $30 million of mining hardware installed in Siberia to avoid Western sanctions.

A representative of SBI, Japan’s largest online brokerage, told Bloomberg that Russia’s invasion of Ukraine has created uncertainty over the prospects for the mining industry in the energy-rich region, while a slump in the cryptocurrency market has made minting cryptocurrencies less profitable. Chief Financial Officer Hideyuki Katsuchi It was revealed that the company plans to sell its equipment and exit Russia.

SBI entered the Crypto asset space earlier than other Japanese financial firms, but negative developments this year resulted in a pre-tax loss of 9.7 billion yen ($72 million) for its cryptocurrency business in the second quarter, when the group also registered a 2.4 10 A net loss of 100 million yen (over $15.8 million), the first time in a decade.

Katsuchi noted that the Japanese brokerage suspended its mining operations in Siberia shortly after the outbreak of the Ukrainian war, but has not yet decided when it will complete its withdrawal from Siberia. The executive noted that the financial firm has no other cryptocurrency operations in Russia, but it intends to continue operating its Moscow-based commercial banking arm, SBI Bank. The move comes after U.S. diplomats reportedly urged authorities in Tokyo to pressure Japanese cryptocurrency exchanges and miners to cut ties with Russia in July.

In April, the International Monetary Fund (IMF) warned in a report that cryptocurrency mining could provide Russia and other sanctioned countries such as Iran with a way to circumvent economic and financial restrictions imposed by the United States and its allies. method. These countries can use their energy resources to power mining facilities and generate revenue through cryptocurrency withdrawals and transaction fees.

According to a recent study, electricity consumption in Russia’s cryptocurrency mining industry has been on the rise over the past few years, increasing nearly 20-fold over the five-year period since 2017. Irkutsk in Siberia offers some of the lowest Electroneum in the country and is one of the most attractive regions for miners, next to the capital Moscow, who can take advantage of developed energy and other infrastructure.

Do you know of other Japanese companies ending their crypto mining operations in Russia? Let us know in the comments section below.

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Source of information: Compiled from BITCOIN by 0x information.The copyright belongs to the original author and may not be reproduced without permission

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