Welcome to the OLE777 – Asia 1st Multiplatform Crypto Gaming. Today, the writer will update the big news in the crypto industry: Russia is limiting crypto mining in regions with energy shortages, Kraken Exchange has laid off 15% of its workforce and Reddit has sold most of its cryptocurrency holdings.

Let’s dig deep into the details!

Russia Plans to Limit Crypto Mining Regarding Energy Deficit

Russia plans to limit cryptocurrency mining in select regions facing severe energy shortages. Deputy Minister of Energy Yevgeny Grabchak stated that areas in the Far East, southwestern Siberia, and the South will be affected due to infrastructure constraints unable to support high-power mining operations. 

The shortage, expected to last until 2030, has prompted enforcement actions against unauthorized miners. Recently, a Novosibirsk resident was detained on suspicion of electricity fraud linked to crypto mining, reportedly earning over 12 million rubles ($123,000). 

This restriction follows a new digital asset law signed by President Putin, which enables the government to regulate crypto mining where energy availability is low. The law, effective Nov. 1, sets guidelines for limiting mining activity and managing mining pools to prevent excess energy demands on the grid.

Kraken Exchange Layoffs 15% of Workers

This week, crypto exchange Kraken followed in the footsteps of Consensys and DYDX by reducing its workers by 15%. Arjun Sethi, co-founder of Tribe Capital, recently joined as Kraken’s co-CEO to drive “organizational discipline,” aiming to address internal challenges.

Reports indicate these cuts mainly impacted higher-level positions, like C-suite executives and managers, as some organizational setups were seen to hinder innovation. Kraken’s latest decision marks it as the third U.S.-based crypto company scaling back due to various reasons. 

Consensys, known for creating MetaMask, recently reduced its workforce by 20%, citing regulatory pressure and economic conditions, while DYDX trimmed 35% of its staff, including core team members.

Previously, in 2022, Kraken had also laid off around 1,100 employees due to the crypto market’s volatility and the collapse of major firms like FTX.

Reddit Sells Its Crypto, But Why?

Reddit recently disclosed that it sold most of its cryptocurrency holdings in the third quarter of 2024, describing the impact as financially minor. 

Initially, Reddit acquired crypto like Bitcoin and Ether for use by its tech teams and to facilitate specific transactions. By the end of September, it had sold off these assets, while continuing to use Ether and Matic for certain platform transactions.

Reddit’s crypto investment strategy, which needs board approval, mainly focuses on regulated digital currencies like Bitcoin and Ether. The company may still engage with crypto in the future but is cautious about risks tied to exchange rates and regulatory changes. 

Starting in 2025, Reddit will report its crypto assets at their fair market value, aligning with evolving accounting standards.