This Week in Mining: August 31st

This week’s news is dominated by developments on the regulatory front:
  1. Kazakhstan’s Digital Development Minister says the country is currently negotiating a $714 million USD investment in its cryptocurrency mining sector. As nations evaluate how to regulate the mining industry, large investments from mining firms playing regulatory arbitrage will certainly influence the conversation. In 2019, Kazakh regulators passed tax laws that rendered crypto mining earnings as tax-free provided they were not sold for fiat.
  2. A draft for a new cryptocurrency bill by the Russian Ministry of Finance is said to outline rules for Russian miners, prohibiting them from getting paid in cryptocurrencies. The bill also includes provisions that would only allow Russian citizens to possess cryptocurrencies if they inherit them or receive them as debtors of a bankrupt company or as compensation for winning a lawsuit.
  3. Cointelegraph has published a write-up about the geopolitical implications of cryptocurrency mining dominance as nation states take various approaches to dealing with the mining industry within their borders. Because mining is a hugely capital intensive industry, miners prefer jurisdictions with stability and predictability in the longer term. There also appears to be an interest in certain places to court miners to breathe new life into outmoded industry assets.