By Aakash Athawasya, Cryptocurrency Journalist at AMBCrypto
The Chinese Bitcoin [BTC] mining ban proposed by the country’s macroeconomic planning agency riffled the market with FUD, leading many to speculate which country could pick up the mining mantle. With many looking east for the new mining havens, eToro’s senior market Mati Greenspan negated.
In an exclusive interview with AMBCrypto, Greenspan highlighted two key reasons which would be the prime factors for cryptocurrency miners. Firstly, the country will have to amass a considerable degree of “cheap renewable energy” and secondly, the legislation and attitude of the country should be “friendly towards crypto”.
Deviating from Japan and South Korea, which has seen crypto-friendly legislation and a pro-crypto populace, Greenspan pegged Canada and Russia to take the mantle. In his words:
“The two biggest ones are Canada and Russia, both of them have seen significant increases in their mining activity lately.”
To substantiate his choice of Canada as a mining haven, Greenspan referenced to an article from the Wall Street Journal, titled “Bitcoin in the Wilderness”. The article stated that Bitcoin mining could “monetize energy through the internet” by using wasted natural gas for the production of Bitcoin.
Wasted “natural gas”, a by-product of petroleum mining has been employed for the production of the top cryptocurrency by Black Pearl Resources, a Canadian mining field. Ryan Wartman, a production foreman at the field told WSJ:
“We’re using it to bring ourselves below the government-regulated amount that we can vent on location and keep producing oil.”
On the topic of Russia as a potential China successor, Greenspan stated that “Russia is extremely pro-crypto”. He added that its leaders are in the midst of introducing legislation for the industry that could come into force later this year.
According to Kremlin.ru, the official website of the President of the Russian Federation Vladimir Putin, a document has been issued which instructed the Federal Assembly, the national legislature of Russia to issue cryptocurrency regulations by July 1, 2019.
Furthermore, this list of regulatory requirements will also tackle other crypto-related aspects like initial coin offerings [ICOs] and cryptocurrency mining. With China’s proposed mining ban to return from public consultation in early May following the possibility of an outright ban, Russia’s July crypto-legislation is all the more important.
During the cryptocurrency bull run at the beginning of 2018, Putin stated that the Russian government should introduce legislation that would allow people to trade not only Bitcoin, but other virtual currencies as well.
“My feeling is that Russia is only increasing their efforts towards being crypto-friendly, rather than decreasing it.”
Recently, a report by Reuters stated that the lower chamber of the Russian parliament voted in favour of an internet bill that aims to solidify the country’s internet “sovereignty”. The bill would allow Russian web traffic and data to flow through a channel controlled by “stated authorities” to build a national “Domain Name System”.
The report adds that the primary motive of this bill is to “defend the country after the United States adopted what they described as aggressive new U.S. cybersecurity policies last year”. However, some members of the crypto-verse have suggested that it could potentially stifle the virtual currency industry, but Greenspan disagreed.