US Sanctions Russian Crypto Mining Host Bitriver

[hatshepsut93]

Source

"Treasury is also taking action against companies in Russia’s virtual currency mining industry. By operating vast server farms that sell virtual currency mining capacity internationally, these companies help Russia monetize its natural resources. Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions," a Treasury statement said.

Basically, Bitriver won't be able to sell their cloud mining to anyone from the US and their allies, and it won't be able to buy mining equipment from those countries. There's even a possibility that third parties, like Chinese companies, won't do business with them if they will want to preserve their connections with the US - there have been examples of such actions by Chinese companies in other fields, even though Chinese government is not sanctioning and is actually supporting Russia.

Sanctions are much more than just "not allowing money to be sent to some country", and crypto is not going be useful for bypassing them.

[Darker45]

Yeah, crypto is not the answer. Crypto cannot counter most of the sanctions imposed on Russia. The Russian economy is grounded on fiat. Its deals with the rest of the world are based on fiat.

And also, a lot of the sanctions are not financial. They may be directed at the Russian economy but they're not necessarily financial sanctions unlike the freezing of bank accounts, SWIFT ban, and others.

It is in this regard that crypto is helpless. How could it address, for example, the ban on the sale of mining equipment? How could crypto be of help if nobody is buying potatoes from Russia anymore?

[laredo7mm]

Source

"Treasury is also taking action against companies in Russia’s virtual currency mining industry. By operating vast server farms that sell virtual currency mining capacity internationally, these companies help Russia monetize its natural resources. Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions," a Treasury statement said.

Basically, Bitriver won't be able to sell their cloud mining to anyone from the US and their allies, and it won't be able to buy mining equipment from those countries. There's even a possibility that third parties, like Chinese companies, won't do business with them if they will want to preserve their connections with the US - there have been examples of such actions by Chinese companies in other fields, even though Chinese government is not sanctioning and is actually supporting Russia.

Sanctions are much more than just "not allowing money to be sent to some country", and crypto is not going be useful for bypassing them.

Do not think this will be a significant loss or concerning matter for Russia or crypto.

Imposed sanctions by the USA already proved to be ineffective. There is no way crypto can be used to put sanctions on Russia or any other country. Its borderless payment system makes it immune to any financial barrier. Maybe that is also the reason Russian banks now want to legalize crypto when a few months earlier we saw a negative sentiment towards crypto from them.

[Moneyprism]

it's a problem for companies in Russia right now,,, but even so crypto users are not only in the US, there are many countries that Bitriver can target for their cloud mining services for example India or China,, of course they have a way to get around this problem

[stompix]

Imposed sanctions by the USA already proved to be ineffective.

Your own Central Bank chief and even the Mayor of Moscow say something else:
https://www.businessinsider.com/russian-central-banker-warns-country-reserves-finite-nabiullina-ukraine-war-2022-4
The only thing that seems to need more sanctions is the import of brainwashing drugs, Russia seems to still get those in large quantities.

it's a problem for companies in Russia right now,,, but even so crypto users are not only in the US, there are many countries that Bitriver can target for their cloud mining services for example India or China,, of course they have a way to get around this problem

Oh yeah, they could definitely sell their mining operations to China! And the Vatican! And Bartovia!

Anyhow, if the US has started to add mining companies to the list Bitmain will have to start making some very cautious moves and decide to whom they plan on selling gear. The US market is by far the largest purchaser of gear right now, Bitmain has orders in the billions with US companies and they don't want to mess that up, moreover, their chip supplier TSMC has already banned the sales of chips to Russia or third companies dealing with Russian clients so slowly the gate is closing down.

[hugeblack]

Sanctions are much more than just "not allowing money to be sent to some country", and crypto is not going be useful for bypassing them.

US sanctions can target anything central as long as there is unanimity. When the United States moves, you find yourself facing an alliance of several countries. therefore most of these countries will follow the same procedures, and then you will find that the market available to you has become very small, which makes you seriously think about bypassing those sanctions.

For example, Bitmain sells millions of devices to the United States, so if the United States decided to ban Bitmain, they would think seriously before selling the devices to Russia.
US could also impose restrictions on chips, semiconductors and other things that greatly harm mining companies.

I just hope that crypto will not be an arena of political conflict because it may mean a quick collapse in prices in the short term.


[1] Bitmain Sells 30K Miners to Marathon Digital for $120M

[icopress]

Your own Central Bank chief and even the Mayor of Moscow say something else:
https://www.businessinsider.com/russian-central-banker-warns-country-reserves-finite-nabiullina-ukraine-war-2022-4
The only thing that seems to need more sanctions is the import of brainwashing drugs, Russia seems to still get those in large quantities.

I would not say it better, but if someone really doubts, then let him ask the moderator of the Russian-language section what it is like for him to live in Russia now. By the way, this is not all the news ... literally today, Binance also made a statement.

Following the EU’s fifth package of restrictive measures against Russia, Binance is required to limit services for Russian nationals or natural persons residing in Russia, or legal entities established in Russia, that have crypto assets exceeding the value of 10,000 EUR. [...]

[zasad@]

I just now heard about this company. But I heard that most of the companies that were engaged in cloud mining services went bankrupt or deceived their customers.
If you are mining cryptocurrency, then supplies of equipment from China are not blocked to Russia. I do not know what they write in the news, but China is very actively selling its products to Russia.

[fiulpro]

Ofcourse cryptocurrencies would be useful but we have to understand that even though the government is trying to somehow try and keep the money flowing in the Russian economy to try and not fuel the war they must understand that cryptos would be inevitably used by "common people" who are clearly not really the cause of the war. Banning companies to prevent them from selling outside the country would create a hole. Now this hole would most probably be filled by countries like : China, making their economy stronger and more developed but we must also understand that the Chinese government would continue to have good relationships with the Russian government therby allowing them to make sure the money flow indirectly. This seems kinda impossible until and unless all the countries join their hands to support Ukraine.

[lovesmayfamilis]

would not say it better, but if someone really doubts, then let him ask the moderator of the Russian-language section what it is like for him to live in Russia now.

Are you kidding again? What does it mean to live in Russia now? On the contrary, I would ask, but Nikolaev, how is he today? Are you kidding yourself? I can believe those who do not understand the Russian language, I also see the stubbornness of Ukrainians defending "their news". But to think that there is a crisis in Russia today is deeply mistaken, I would again return the question to everyone whose country has sent sanctions against Russia.

[Leviathan.007]

I don't think they are really able to damage Bitriver because even if Bitriver decides to keep dealing in Russia still can have its own demand and its own customers, however, before starting the war there was even a chance to say that Russia will also ban bitcoin but since the war started Russia is using cryptocurrencies and bitcoin to somehow bypass the sanctions by the USA and some other europian countries companies like Bitriver can help them do this so I won't get surprised if I see the Russian governments supporting this company for its own benefit.

[Pomogator]

Very sad news. The ban on the purchase of mining equipment is very easy to get around if you buy this equipment through neighboring countries or through gray import. The question is whether it will be profitable or better to find alternative places of purchase, the same China.

[Fortify]

Source

"Treasury is also taking action against companies in Russia’s virtual currency mining industry. By operating vast server farms that sell virtual currency mining capacity internationally, these companies help Russia monetize its natural resources. Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions," a Treasury statement said.

Basically, Bitriver won't be able to sell their cloud mining to anyone from the US and their allies, and it won't be able to buy mining equipment from those countries. There's even a possibility that third parties, like Chinese companies, won't do business with them if they will want to preserve their connections with the US - there have been examples of such actions by Chinese companies in other fields, even though Chinese government is not sanctioning and is actually supporting Russia.

Sanctions are much more than just "not allowing money to be sent to some country", and crypto is not going be useful for bypassing them.

It was almost inevitable that these sort of crackdowns were going to take place, as many countries are aiming to cut off any business with Russia right now and looking into even the smallest interactions. I'll never quite understand why such cloud mining ever even exists though, as surely if it is a profitable operation they would be mining themselves and not renting out the platforms to others in the form of a cloud computer. While mining in a cold climate sounds ideal, I can only imagine that all the heat being put out will ultimately contribute even more to global warming and in particular the immediate surrounding area warming up - not good news if you're sitting in a permafrost type location.

[Davidvictorson]

Do not think this will be a significant loss or concerning matter for Russia or crypto.

Imposed sanctions by the USA already proved to be ineffective. There is no way crypto can be used to put sanctions on Russia or any other country. Its borderless payment system makes it immune to any financial barrier. Maybe that is also the reason Russian banks now want to legalize crypto when a few months earlier we saw a negative sentiment towards crypto from them.

The sanctions we are seeing against Russia are amongst the most powerful the world has ever know largely because they are being enforced by the US and her allies. This latest sanction will even hurt Russia more. I hope that neutral countries and countries friendly to Russia will not aid the evasion of this sanctions. However, it is likely that China, North-Korea, Serbia might keep doing business with Russia.

[DrBeer]

would not say it better, but if someone really doubts, then let him ask the moderator of the Russian-language section what it is like for him to live in Russia now.

Are you kidding again? What does it mean to live in Russia now? On the contrary, I would ask, but Nikolaev, how is he today? Are you kidding yourself? I can believe those who do not understand the Russian language, I also see the stubbornness of Ukrainians defending "their news". But to think that there is a crisis in Russia today is deeply mistaken, I would again return the question to everyone whose country has sent sanctions against Russia.

I agree - there is no crisis for 75% of the Russian population. Well, what kind of crisis can be for people who have always lived "at the bottom" and have never seen a normal life?! Now, some even, one might say, dawn and rise - if the son returns alive from Ukraine, where he was lucky to steal a toilet bowl or a washing machine! Well, if they kill - the family has even more profit - perhaps compensation will be paid. So as long as they steal and rob a neighboring country or receive a payment, then there is no crisis! The question is what then? 50% of the population of Russia do not have water supply and sewerage - where to install those toilet bowls and washing machines!?
I don’t need to tell fairy tales here - I have relatives in Russia, I know how they “live” from Krasnodar to Baikal

[Hydrogen]

Bitriver appears to be a cloud mining service, headquartered in switzerland.

I think this will affect russia far less than other anti russia steps taken during the early days of the ukraine invasion.

The article seems to imply that some significant volume of crypto mining hardware is being restricted. But russia has already had these restrictions against import of high tech components for many years. Which is a big part of the reason russian drones captured by ukrainian forces are using old cameras and technology. Due to them not being able to import newly minted electronic components or bitcoin miners.

Switzerland isn't far from germany and germany isn't far from ukraine's border. Geographically, russia's invasion front isn't far from bitrivers crypto mining resources.

[ajochems]

US making sanctions on various way on Russia.Russia was old enemy of United States.So now they looked on a new way of sanctions on Russia using the Crypto mining.But the Russia demands was inevitable one among the countries of the world.Cryptocurrency need was inevitable one for the Russia for the transaction.So let see how long this sanctions drama wil sustain here.

[hatshepsut93]

The article seems to imply that some significant volume of crypto mining hardware is being restricted. But russia has already had these restrictions against import of high tech components for many years. Which is a big part of the reason russian drones captured by ukrainian forces are using old cameras and technology. Due to them not being able to import newly minted electronic components or bitcoin miners.

If you are talking about Orlan-10, it's made from bad components because they assume a high loss rate, so it's not like all Russian drones and equipment is low tech. Also, it's worth to notice that while the West had largely stopped supplying weapons to Russia after 2014, it wasn't a complete embargo.

There will be cases of companies trying to bypass sanctions, but it's risky for them, because they will be severely punished. If the countries will have the political will to do so.

So, in general, sanctions work, and it's likely that they will work even in crypto, because the mainstream crypto industry can and will be regulated.

[Hydrogen]

If you are talking about Orlan-10, it's made from bad components because they assume a high loss rate, so it's not like all Russian drones and equipment is low tech. Also, it's worth to notice that while the West had largely stopped supplying weapons to Russia after 2014, it wasn't a complete embargo.

There will be cases of companies trying to bypass sanctions, but it's risky for them, because they will be severely punished. If the countries will have the political will to do so.

So, in general, sanctions work, and it's likely that they will work even in crypto, because the mainstream crypto industry can and will be regulated.

Its not the level of relative technology but rather the way its assembled. Modern components do many of the jobs better, cheaper, simpler and more reliable. There are mass produced jury rigged mechanisms present which indicate prior shortages.

Severe punishments encourage capital flight. China saw this when they tried to severely punish the crypto mining sector. Nations who adopt the opposite are incentivized to do so by economic growth, growing job markets and greater political clout and prestige.

Crypto might become regulated. But can it be regulated without everyone knowing the options and opportunities they're being deprived of under regulatory standards, and will that matter? Regulation in the modern era trends to the polar opposite of efficiency and functionality. People might choose to accept this. Or they might not. The important thing is regulation runs contrary to the self interests of greater than 99.9% of the global population. And it may not take people long to figure this out.

But maybe I'm wrong and people enjoy being deprived of opportunities and options in life, while having their standard of living diminish, stranger things have happened? Maybe they won't notice.

[Haunebu]

Do not think this will be a significant loss or concerning matter for Russia or crypto.

Agreed. Russia doesn't really depend heavily on cryptocurrencies or anything which is why this ban is pointless though I can understand the reasoning behind it.

Imposed sanctions by the USA already proved to be ineffective.

Wrong. These sanctions are hurting them in more ways than one and the Russian citizens can attest to that. They didn't end the war, but they are slowly and steadily inflicting pain on Putin and other Russians.

I agree - there is no crisis for 75% of the Russian population.

75%? I doubt that. Most Russians are heavily dependent on Western brands just like the rest of the world. For example, recent Netflix debacle proved that many Russians were actively using their service.