The biggest online brokerage in Japan, SBI Holdings, announced that it will suspend its crypto mining facilities in Russia, adding to the turmoil already caused by the prospect of US sanctions on August 19.
The future of the mining industry in Siberia (Russia) is questionable in light of Russia’s invasion of Ukraine, and mining tokens has become less lucrative due to the collapse of the global crypto market, a spokeswoman told Bloomberg News. Hideyuki Katsuchi, chief financial officer, made the intention to sell the equipment and leave the country public earlier this week. After Beijing’s crypto mining ban in May, crypto miners were chased out of China. Miners went to Russia, partly to take advantage of low-cost electricity from natural gas and hydroelectric dams that have made it a popular destination alongside North America.
According to the representative, SBI Holdings, which has expanded into digital currencies more quickly than other Japanese financial institutions, stopped mining in Siberia shortly after the conflict started. For the three months ending June 30, the company’s crypto asset division reported a pretax loss of 9.7 billion yen ($72 million). The organisation, which is supported by Sumitomo Mitsui Financial Group Inc., swung to a net loss of 2.4 billion yen for the quarter, its first in ten years, he added.
According to the spokeswoman, SBI has not yet determined when it would finish its departure from Siberia. According to him, the company has no other cryptocurrency operations in Russia and will continue to run SBI Bank LLC, its commercial banking division with offices in Moscow.
The International Monetary Fund issued a warning in a study in April that crypto mining would provide Russia with a method to get around broad economic sanctions put in place by the US and other western nations. Sanctioned nations may use their energy resources to power mining while earning money straight from transaction fees.