• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Saturday, January 28, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

Leading Japanese Online Broker SBI to Pull Out of Russia’s Crypto Mining Sector – Mining Bitcoin News

August 20, 2022
in Bitcoin
Reading Time: 4 mins read
A A
ShareShareShareShareShare

Related articles

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year – Markets and Prices Bitcoin News

January 28, 2023

Does the Crypto Market Have The Strength To Break To The Upside? QCP Capital Weighs In

January 28, 2023

SBI Holdings, the largest online brokerage in Japan, is shutting down its crypto mining business in the Russian Federation. Amid mounting uncertainty over the future of such investments due to the ongoing conflict in Ukraine, as well as decreased mining profits, the financial firm said it plans to sell its equipment and withdraw.

Japan’s SBI Broker to Complete Withdrawal From Russian Mining Industry

Access to low-cost power and suitable climatic conditions made Russia an attractive destination for cryptocurrency miners when China cracked down on the industry in May of 2021. However, sanctions imposed over Moscow’s decision to attack Ukraine this year have hit bitcoin mining, among other Russian industries.

One of the largest mining data-center operators with significant presence in Russia, Switzerland-based Bitriver, was targeted by the U.S. Treasury Department this spring. Then the U.S. company Compass Mining sought to liquidate $30 million in mining hardware installed in Siberia in order to avoid Western sanctions.

Russia’s invasion of Ukraine has created uncertainty over the prospects of the mining business in the energy-rich region, while the crypto market’s downturn has made it less profitable to mint digital currencies, a representative of SBI, the biggest online broker in Japan, told Bloomberg. Chief Financial Officer Hideyuki Katsuchi unveiled that the company plans to sell its equipment and withdraw from Russia.

SBI entered the digital asset space earlier than other Japanese financial firms, but this year’s negative developments have led to a pre-tax loss of 9.7 billion yen ($72 million) from its crypto business in the second quarter, when the group also registered a 2.4 billion yen net loss (over $15.8 million), a first in a decade.

The Japanese brokerage suspended its mining activities in Siberia shortly after the war in Ukraine broke out, but it is yet to decide by when it will complete the withdrawal from Siberia, Katsuchi noted. The financial company has no other crypto business in Russia, the executive pointed out, but it intends to continue operating its Moscow-based commercial banking unit, SBI Bank. The move comes after in July, U.S. diplomats reportedly urged authorities in Tokyo to pressure Japanese crypto exchanges and miners to sever ties with Russia.

In April, the International Monetary Fund (IMF) warned in a report that crypto mining may offer Russia and other sanctioned nations, like Iran for example, a way to circumvent economic and financial restrictions imposed by the U.S. and its allies. These countries can use their energy resources to power mining facilities and generate revenue from the extraction of cryptocurrencies and transaction fees.

According to a recent study, electricity consumption in Russia’s crypto mining sector has been constantly rising in the past few years, registering an almost 20-fold increase over the five-year period since 2017. Siberia’s Irkutsk, offering some of the lowest electricity rates in the country, is one of the most attractive regions for miners, alongside the capital Moscow where they can take advantage of well-developed energy and other infrastructure.

Tags in this story
conflict, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, cryptocurrency miners, cryptocurrency mining, Japan, japanese, Mining Operations, restrictions, Russia, russian, Sanctions, SBI, SBI Holdings, U.S., Ukraine, United States, War

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

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons, T. Schneider

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It


Credit: Source link

ShareTweetSendPinShare
Previous Post

DeFi Transactions Pose Higher Risks, Thai SEC Cautions Investors

Next Post

The Power Rangers Digital Pop! NFT Collection Announced

Related Posts

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year – Markets and Prices Bitcoin News

January 28, 2023

Goldman Sachs has ranked bitcoin the best-performing asset so far this year. The cryptocurrency also tops the global investment bank’s...

Does the Crypto Market Have The Strength To Break To The Upside? QCP Capital Weighs In

January 28, 2023

The conditions of the cryptocurrency market have changed drastically; according to an analysis by QCP Capital, the options market in...

Marathon plans 250 MW Abu Dhabi bitcoin mining JV

January 27, 2023

Marathon Digital, a crypto mining company, is initiating a $406 million joint venture (ADGM Entity) with FS Innovation to build...

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

January 27, 2023

In a recent tweet Ben Lilly, co-founder of Jarvis Labs, the on-chain analytics and token design firm, gave his analysis...

Biden Admin Roadmap Cryptocurrency Risks – Bitcoin Magazine

January 27, 2023

The Biden Administration has posted an official blog detailing its roadmap to mitigate the risks of cryptocurrencies.The roadmap starts by...

Load More
Next Post

The Power Rangers Digital Pop! NFT Collection Announced

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Goldman Sachs Ranks Bitcoin As World Best Performing Asset

January 25, 2023

Bitcoin mining difficulty reaches all-time high

January 16, 2023

2023 will see the death of play-to-earn gaming

December 31, 2022

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • Amazon Developing Blockchain & NFTs Gaming Platform: Report
  • BlockFi permitted to pay $10M in staff bonuses in spite of bankruptcy
  • Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year – Markets and Prices Bitcoin News

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$23,119.001.20%
  • ethereumEthereum(ETH)$1,601.042.13%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.000.00%
  • usd-coinUSD Coin(USDC)$1.00-0.01%
  • binancecoinBNB(BNB)$309.211.89%
  • rippleXRP(XRP)$0.4131521.52%
  • binance-usdBinance USD(BUSD)$1.00-0.01%
  • cardanoCardano(ADA)$0.3918604.76%
  • dogecoinDogecoin(DOGE)$0.0882743.40%
  • matic-networkPolygon(MATIC)$1.155.24%
  • okbOKB(OKB)$38.868.91%
  • solanaSolana(SOL)$24.623.49%
  • staked-etherLido Staked Ether(STETH)$1,598.412.19%
  • polkadotPolkadot(DOT)$6.613.33%
  • shiba-inuShiba Inu(SHIB)$0.0000122.92%
  • avalanche-2Avalanche(AVAX)$20.9016.80%
  • litecoinLitecoin(LTC)$89.162.32%
  • tronTRON(TRX)$0.0632862.47%
  • uniswapUniswap(UNI)$6.883.83%
  • daiDai(DAI)$1.00-0.14%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,122.001.51%
  • cosmosCosmos Hub(ATOM)$13.716.50%
  • ToncoinToncoin(TON)$2.606.47%
  • chainlinkChainlink(LINK)$7.435.02%
  • leo-tokenLEO Token(LEO)$3.720.38%
  • moneroMonero(XMR)$179.374.94%
  • ethereum-classicEthereum Classic(ETC)$22.112.59%
  • AptosAptos(APT)$17.87-0.65%
  • bitcoin-cashBitcoin Cash(BCH)$134.951.38%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • stellarStellar(XLM)$0.0938553.05%
  • apecoinApeCoin(APE)$6.260.61%
  • nearNEAR Protocol(NEAR)$2.637.19%
  • quant-networkQuant(QNT)$153.403.86%
  • crypto-com-chainCronos(CRO)$0.0824013.68%
  • filecoinFilecoin(FIL)$5.461.79%
  • lido-daoLido DAO(LDO)$2.415.56%
  • algorandAlgorand(ALGO)$0.2629718.60%
  • vechainVeChain(VET)$0.0248955.50%
  • hedera-hashgraphHedera(HBAR)$0.0697194.30%
  • internet-computerInternet Computer(ICP)$6.025.25%
  • axie-infinityAxie Infinity(AXS)$12.025.19%
  • decentralandDecentraland(MANA)$0.729.29%
  • aaveAave(AAVE)$87.481.35%
  • the-sandboxThe Sandbox(SAND)$0.776.51%
  • fantomFantom(FTM)$0.4789901.69%
  • eosEOS(EOS)$1.110.74%
  • flowFlow(FLOW)$1.102.91%
  • elrond-erd-2MultiversX(EGLD)$45.505.10%