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

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New York-based cryptocurrency mining company Foundry USA has become the second largest Bitcoin (BTC) mining pool in the world after acquiring a 15.42% share of the network.

Data from BTC.com shows that Foundry USA, owned by Digital Currency Group, is behind the pool manager AntPool with a hash rate of just 4,000 PH/s, representing 17.76% of the network’s share at the time of writing.

The increase in the participation of US departments can be attributed to the recent public ban imposed by China on cryptocurrency and mining. The ban has led to a massive exodus of local bitcoin miners who now live in crypto-friendly jurisdictions, including the United States, Russia and Kazakhstan.

Among the top five distributed mining pools with a hash rating, Foundry USA receives the highest average mining reward of 0.09418116 BTC (~$5,500) per block. According to Kevin Chang, Vice President of Foundry USA, “We distribute the block reward among miners on a Pay-Per-Share System (FPPS), and our pooling fee is actually 0%.” US companies have also benefited from China’s weakness in terms of the proliferation of crypto ATMs.

Coin ATM radar data shows that a Georgia-based bitcoin vault has overtaken its Chinese peers to become the largest crypto ATM operator in the world. Interestingly, most crypto ATM operators are run by US companies, a trend that became even more pronounced after China’s active ban on crypto activity.

Despite the apparent intention to implement an internal central bank digital currency (CBDC), the Chinese Communist Party also asked the public to ban bitcoin mining on October 21, sparking talk of a change in the government’s negative attitude toward bitcoin and cryptocurrency mining activities. …

However, statistics confirm that China’s contribution to bitcoin mining hash rate has been steadily declining since September 2019. Two years ago, China accounted for more than 75% of the bitcoin mining hash rate, which dropped to 46% by April 2021 before the cryptocurrency was banned. …

On this topic: US lawmakers are introducing bills to “fix” the reporting requirements for cryptocurrency under the Infrastructure Act.

As the United States moves toward massive bitcoin adoption, regulators are looking to clarify new reporting requirements put forward by the Biden administration.

Members of the Republic and the Democratic Party have repeatedly called for changes to crypto tax reporting reforms, along with a call to change the definition of the word “intermediary” in crypto transactions.

As of 2024, the two-tier infrastructure bill requires the public to declare digital asset transactions over $10,000 to the IRS. The bill currently treats miners, auditors, hardware and software developers, and protocol developers as intermediaries.

Source: CoinTelegraph

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