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Foundry USA becomes second-largest Bitcoin mining pool amid China ban

November 20, 2021No Comments


New York-based crypto mining service provider Foundry USA takes the lead to become the world's second largest Bitcoin (BTC) mining group after taking a 15.42% stake in the network.

Data from BTC.com shows that Foundry USA, owned by Digital Currency Group, is behind group leader AntPool by a hash rate of just 4,000 PH / s, contributing to a 17.76% network share at time of writing. this article.

The rise in participation by US entities can be attributed to China's recent blanket ban on cryptocurrency trading and mining activities. The ban forced a large-scale migration of local Bitcoin miners, who now reside in crypto-friendly jurisdictions including the United States, Russia and Kazakhstan.

Of the top five mining pools in terms of hash rate distribution, Foundry USA charges the highest average transaction fees of 0.09418116 BTC (almost $ 5,500) per block. American companies have also regained slack from China in terms of crypto ATM distribution.

Coin ATM Radar data shows that Georgia-based Bitcoin Depot has surpassed its Chinese counterparts to become the world's largest crypto ATM operator. Interestingly, the majority of crypto ATM operators are run by US companies, a more prominent trend after China's proactive ban on crypto activities.

Despite the clear intention of pursue a central bank internal digital currency (CBDC), the Communist Party of China has also sought public opinion on the Bitcoin mining ban on October 21, prompting talks about amending the government's negative stance on Bitcoin and cryptocurrency mining activities. .

However, Statista data confirms that China's contribution to the Bitcoin mining hash rate has steadily declined since September 2019. Two decades ago, China accounted for more than 75% of the Bitcoin mining hash rate, which in April 2021 dropped to 46% before banning cryptocurrencies.

Related: US Lawmakers Introduce Bill to 'Fix' Infrastructure Act's Crypto Reporting Requirement

As the United States moves toward widespread adoption of Bitcoin, regulators seek clarity regarding the new reporting requirements introduced by Biden management.

Members of the Republic and the Democratic Party have appealed, on different occasions, to amend crypto tax reporting reforms alongside a request to redefine the word "broker" in crypto transactions.

Beginning in 2024, the bipartisan infrastructure bill requires the general public to report digital asset transactions worth more than $ 10,000 to the Internal Revenue Service. Currently, the bill considers miners and validators, hardware and software developers, and protocol developers as intermediaries.