In early November, internet traffic to major cryptocurrency exchanges in Russia saw an 8% increase.
This rise was attributed to the increasing prices of Bitcoin and changes in local regulations, according to an analysis by MegaFon, one of Russia’s leading telecommunications providers.
The analysis showed that users in Russia accounted for about 27% to 30% of the total internet traffic to significant cryptocurrency platforms. This increase aligns with a global trend, as web traffic to the top 20 cryptocurrency exchanges rose 8% to 10% in November compared to October.
The surge in traffic was particularly notable on platforms like Deribit, which saw a 126% increase in visits in early November. Other exchanges also experienced significant growth, with HTX (formerly Huobi) reporting a 24% increase and KuCoin seeing a 23% rise in traffic. However, while some platforms thrived, others faced declines. The Chinese exchange Gate.io experienced a 26% drop in traffic, while Upbit and Kraken saw decreases of 6% and 4%, respectively.
MegaFon believes that the increasing interest in cryptocurrency in Russia may also be driven by the country’s new crypto mining law, which took effect on November 1, alongside the strong performance of the global market.
The law stipulates that only registered individual entrepreneurs and organizations can engage in crypto mining. A monthly electricity consumption cap of 6,000 kWh is enforced for non-entrepreneurial miners. Additionally, temporary mining bans are scheduled to begin in certain regions on December 1 due to electricity shortages, with restrictions expected to last until March 2025.
Meanwhile, Russia is advancing amendments to its Bitcoin mining legislation, introducing tax rules for mining activities, transactions, and infrastructure. Local reports indicate that the Ministry of Finance proposes classifying cryptocurrencies as property for tax purposes, taxing mined tokens based on their market value upon receipt, and allowing miners to deduct related expenses from taxable income.
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