In recent months, the mining of cryptocurrencies has come under pressure in various regions of the US and Canada. For those who wish to invest in cryptocurrency mining, the Russian government now provides tax incentives. The new $12 million bitcoin mining facility will launch in eastern Siberia with direct government assistance. The complex, which started operating this year, will hold 30,000 cryptocurrency mining equipment, employ 100 people, and utilize 100 megawatts of grid power.
The Facility will Utilize Many Liberties
The establishment of the crypto mining center in Buryatia, a republic in eastern Siberia and a member of the Russian Federation, has been announced, according to local media. Buryatia is operated by the state-owned Corporation for the Development of the Far East.
The plant will employ 100 people, have 30,000 mining equipment, and use 100 megawatts from the electrical system. It will launch in the first half of 2023 and be owned and run by BitRiver, the biggest cryptocurrency mining service provider in Russia. The mining cluster will benefit from several opportunities, including no land or property taxes and a low-income tax rate. The mining operator will pay half as much for electricity.
Why did Russian Government’s Mind Change About Cryptocurrencies?
The legislative designation of Buryatia as an “advanced development territory”—a special economic zone intended to attract both local and international investment—can be used to justify the government’s support. The Ministry of Far East and Arctic Development’s subsidiary, the Far East Development Corporation, focuses on assisting investment initiatives.
The Russian government has changed its mind toward cryptocurrency since the start of the war in Ukraine and the ensuing financial sanctions, especially with regard to mining. State-owned gas firms Gazprom Neft and BitRiver partnered in July 2022 to offer energy produced from natural gas. As a result of the partnership, BitRiver has begun to build digital infrastructure near oil fields where Gazprom provides flare gas to cryptocurrency mining operations.
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