Bitcoin mining can be a profitable business if you know how to approach it wisely. To get started, it’s crucial to select a country where this activity is legal. You won’t have to relocate there – it’s rather possible to manage your ASICs remotely with the help of a reliable provider. In this article, we’ll talk about the specifics of Bitcoin mining regulations worldwide and will help you pick an optimal location.
Is Bitcoin mining legal? The answer to this question can be trickier than it seems. Let’s have a look at different possible situations.
The laws of some countries unambiguously state that it’s legal to mine BTC. Kazakhstan can serve as a good example – crypto mining is a licensed business there. Others straightforwardly prohibit mining, such as China. However, until 2021, this country used to be the world’s prime destination for BTC miners.
Based on the example of China, we should note that in some territories, the legislation system tends to be volatile. The laws can change 180° at any moment. Other countries approach the issue of adopting cryptocurrencies strategically. For instance, Salvador in 2021 proclaimed Bitcoin its legal tender – and this should be unlikely to change any time soon.
In many countries, the jury is still out on the legality of Bitcoin mining and usage. For instance, the crypto industry remains unregulated in most parts of Africa. The USA lacks a federal law on the matter and crypto mining remains regulated only on the state level. Thinking logically, you’d better start a mining business in Salvador than in an African country that lacks crypto-related laws.
However, it’s not the end of the story. If a selected country supports free Bitcoin mining, it doesn’t necessarily mean that you’ll be allowed to use the mined coins as you wish. For example, in Iran, crypto mining has been legal since 2019. But you can’t use the mined assets just as freely as the local national currency, rial. Bitcoin can be used for payments only to selected foreign companies that work in Iran. Before you start mining, make sure you’ll be allowed to handle the mined coins as you’re planning to.
As we said above, you can mine crypto remotely, without leaving your homeland. There are two options for doing so:
Renting a Bitcoin mining machine – or several ones. You won’t have to set up and maintain them because they will be placed on the provider’s territory and the provider’s staff will take care of them.
Bitcoin cloud mining. In this case, you rent remotely not the equipment but its hashing power. It’s the most beginner-friendly mining method. Your involvement is minimal and boils down to picking a suitable contract.
No matter which of them you prefer, you’ll be able to control the mining performance through a mobile app and receive your rewards daily or every few days.
Before you get down to remote mining, make sure it’s legal in the territory where you live. Find out how to properly pay taxes for it. In theory, it’s possible that a specific country fails to support conventional mining but doesn’t mind its cloud counterpart. Or, cloud mining can be unregulated yet – and you can try to benefit from it for as long as it’s not proclaimed illegal. When you decide to finish this activity, it will be enough to terminate the contract.
To make a profit from BTC mining, it’s not enough to choose a location where this business is legal. It’s just as vital to find a place with cheap electricity. For instance, Salvador can afford to place bets on Bitcoin because it relies on geothermal energy from its volcanoes.
Another important aspect is the infrastructure. Let’s imagine that you rent an ASIC or hashing power remotely. It’s essential that the rig is placed in a safe location, protected by armed guards. The climate conditions inside the building should be optimal for mining – that is, without the risks of overheating. If hardware breaks down, the provider’s staff should be able to fix it promptly on the spot. Otherwise, it might take too long to send the machine with a warranty to its manufacturer – and you’ll fail to make a profit until it’s repaired and sent back.
Last but not least, the provider whose services you use should have a strong and experienced team and an impeccable reputation.
One of the best countries for miners on the global map is Armenia. Its government entirely supports blockchain technology and the crypto industry. In 2018, a Free Economic Zone called ECOS was launched with ideal conditions for BTC mining.
Its residents are exempt from most taxes for 25 years. They don’t have to pay taxes for importing and exporting goods, adding value, making an income, conducting deals with properties, and so on. The only tax that is valid for them is the monthly one on their employees’ income.
The ECOS zone occupies 2.2 hectares. Such a territory can accommodate 20,000 mining devices. Initially, the data center capacity was 60 MW – and in the future, it can expand to an additional 200 MW.
The infrastructure of the data center perfectly meets the current industry standards. Armed guards prevent emergencies 24/7. Skilled servicemen are ready to repair the equipment as fast as possible. Spare parts for ASICs are supplied regularly and stored in a well-organized warehouse.
The average annual temperature of the surrounding environment doesn’t exceed 4.8°C, which is spot-on to prevent overheating. The Hrazdan power plant ensures an almost 100% up-time supply of cheap electricity. Thanks to the favorable natural conditions in the area, ECOS plans to fully switch to renewable energy in the mid-term.
ECOS ticks all the boxes of a reliable provider. It allows you to buy or rent an ASIC, hosted at ECOS data center, as well as try cloud mining. Its conditions are transparent and its support services are top-notch. The target audience of ECOS includes both beginners and seasoned miners. Currently at ECOS, after registration, you can use a promo code "TryBeforeBuy" to activate a trial miming contract. Feel free to try your hand at this exciting activity!
