FX.co ★ Five best countries for crypto mining

USA

The United States occupies the top spot in this ranking. According to reports, between January and May 2023, more crypto assets were mined in the US than anywhere else in the world. The US is considered to be an undisputed leader in issuing and mining digital assets with an estimated mining capacity of 3-4 GW. There has been some slowdown in the American crypto mining sector due to the elimination of tax benefits, rising electricity prices, and regulatory restrictions. The United States has a well-developed regulatory framework and is considered to be the most favorable country for crypto business. The cost of mining in the US varies significantly from state to state, with Washington being the most attractive state for miners. The main issues faced by the crypto community in the United States are high electricity costs (compared to other countries) and the need to strictly comply with local laws.

Russia

Russia ranks second among the best countries for cryptocurrency mining. According to recent reports, from January to March 2023, the Russian Federation became the second largest cryptocurrency mining country in the world with an estimated capacity of 1 GW. Previously, the country was in third place. In 2022, Russian regulators planned to legalize digital assets, but the legislation is still being developed. Even though regulation of the digital asset market in Russia may be tightened in the future, this does not deter both Russians and foreign investors, who are highly interested in establishing mining operations there. However, crypto companies are hindered by regulatory uncertainty in Russia. The abundance of available land, cheap electricity, a high level of unemployment, a suitable climate, and the leniency of local regulatory bodies make Russia an attractive jurisdiction for crypto miners.

Iceland

Iceland is third on the list of the best countries for crypto mining. This North European island state boasts several advantages for crypto mining operations, including low electricity prices, potential savings on cooling equipment, and favorable business regulations. Iceland does not impose restrictions on crypto mining, offering a welcoming environment for miners. However, large-scale mining farm construction may be hindered by the relatively high wages in the country. Additionally, some consider Iceland's geographical isolation from mainland Europe to be a drawback for conducting crypto business.

Venezuela

The fourth spot on the list of the best countries for crypto miners is Venezuela. Analysts have noted the significant role played by cryptocurrencies in the country's economy, which has long suffered from hyperinflation. Local residents have turned to digital assets to mitigate the adverse effects of the government's ineffective financial policies. In response to the growing interest in crypto among Venezuelans, the government introduced its own national cryptocurrency, the Petro. However, despite the regulator’s efforts to promote this new financial instrument, many citizens have not embraced the initiative. Nevertheless, Venezuela remains an attractive jurisdiction for miners due to its inexpensive electricity, low wages, and the willingness of local citizens to work in the crypto industry. These factors contribute to lower operational costs for mining farms compared to other countries. In 2020, cryptocurrency mining was officially legalized in Venezuela. Miners are licensed by the country’s crypto regulator, the National Superintendency of Crypto Assets and Related Activities (SUNACRIP).

Kuwait

The fifth place in the ranking is occupied by Kuwait. This Middle Eastern country is quite attractive for crypto enthusiasts thanks to the affordable cost of living and favorable business conditions. However, the scorching weather poses a significant challenge, necessitating robust cooling systems to maintain optimal mining operations. Another important aspect for miners is Kuwait's crypto mining regulation, or rather the lack thereof. The local laws have ignored this rapidly evolving industry, primarily due to a lack of consensus among Kuwaiti authorities regarding this issue. The absence of specific laws governing or prohibiting digital asset mining allows market participants to operate without undue constraints within Kuwaiti territory. However, access to certain cryptocurrency exchanges is blocked for Kuwaiti citizens, forcing many miners to seek foreign buyers for their crypto assets.