Photo Credit To Denta Lent Via Flickr
The Library of Congress came up with a report that looked into the regulation of crypto around the world, including how crypto mining is regulated in various nations. Here is a summary of some of the most interesting jurisdictions when it comes to the regulation of crypto mining such as Bitcoin and Ethereum mining.
Nations Currently Opposed to Crypto Mining
One of the nations most opposed to crypto mining is Iran. The nation is so opposed to cryptocurrency mining that it recently cut off power to all Bitcoin mining farms know to be operating in the nation. This move was an important reminder that regulators still had a lot of say when it came to crypto.
Despite this ban on crypto mining in Iran, things could change. The main issue is that Iran subsidizes power for its citizens. As a result, those using crypto mining operations were unfairly benefitting from these subsidies. Iran has said it may create regulation to allow mining farms to pay the same rates as that charged on power Iran exports to neighboring nations.
Countries Silent on Crypto Mining
China has been quite outspoken when it comes to cryptocurrency. The nation banned all crypto exchanges and ICOs from operating in the nation. It also banned the use of crypto in its financial ecosystem over fears that it could destabilize it.
Despite this, China is a major source of crypto mining activity. Most of this activity is in the Sichuan province, which has an abundance of cheap hydropower. Many miners move there during the wet season when power rates in the province drop drastically. It is estimated that Chinese miners are responsible for 70% of all mined coins annually. Despite this, Chinese lawmakers have ignored crypto mining. Miners there do not pay any kind of tax from their proceeds.
Another nation that is lax on crypto mining is Russia. Like China, there is no regulatory stance on mining. However, using crypto for payment is banned. The low cost of power and cold climate has made Russia a haven for miners. Crypto mining operations pay no tax here.
Nations Where Crypto Mining Enjoys Stable Regulation
Canada is quite friendly to crypto. It even has a program that encourages crypto miners to set up their mining farms here. When miners mine BTC, they pay tax. If someone runs crypto mining as a hobby, he or she does not pay tax. If it is a business, Canadian authorities require one to pay tax.
Other nations friendly to crypto are Iceland and the Czech Republic. The Czech Republic is home to Slushpool, which is the largest mining pool globally. The EU member nation is quite lax on crypto taxation. Iceland’s cold climate and renewable energy source have made it attractive to crypto miners.
Another nation that allows crypto mining is the US. In fact, only the city of Pittsburg has banned crypto mining. This came after a mining operation the town used 10% of the city’s power supply. One of the cheapest places to mine crypto in the US is Louisiana. Miners have to pay tax on their crypto to the IRS.