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

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

Data from BTC.com shows that Foundry USA, owned by Digital Currency Group, lags behind the pool leader AntPool with a hash rate of just 4000 PH / s, which contributed to a network share of 17. 76% at time of writing.

The increase in participation of U.S. entities can be attributed to China’s recent blanket ban on crypto 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 (nearly $ 5,500) per block. US companies have also taken over from China in terms of crypto ATM distribution.

Data from Coin ATM Radar shows that Georgia-based Bitcoin Depot has overtaken its Chinese counterparts to become the world’s largest crypto ATM operator. Interestingly, the majority of crypto ATM operators are run by U.S. companies, a more marked trend after China’s proactive ban on crypto activities.

Despite the clear intention to seek an internal digital currency at the central bank (CBDC), the Communist Party of China also sought public opinion on the Bitcoin mining ban on October 21, which triggered conversations around changing the government’s negative stance on Bitcoin and cryptocurrency mining activities.

However, Statista data confirms that China’s contribution to Bitcoin’s mining hash rate has been steadily declining since September 2019. Two decades ago, China accounted for over 75% of Bitcoin’s mining hash rate, which in April 2021 fell to 46% before the ban. cryptocurrencies.

Related: US Lawmakers Introduce Bill to ‘Fix’ Infrastructure Act Encryption Reporting Requirement

As the United States moves towards widespread adoption of Bitcoin, regulators seek to clarify new reporting requirements spelled out by the Biden administration.

Members of the Republic and the Democratic Party have called, on various occasions, for changes to crypto tax reporting reforms as well as a plea to redefine the word “broker” in crypto transactions.

Beginning in 2024, the bipartisan infrastructure bill requires the general public to report transactions of digital assets valued at more than $ 10,000 to the Internal Revenue Service. The bill currently treats miners and validators, hardware and software developers, and protocol developers as brokers.