Russia, the adoption of Crypto and Mining advances!

Since the imposition of restrictive measures against the Russian Federation, the country has shown a growing interest in cryptocurrencies. Last month the local press had indeed reported on the construction of a mining center in the Republic of Buryatia. Its cost, estimated at 900 million rubles demonstrates the major step towards the legalization of cryptocurrencies and underlying technologies in the country.

Russia, an investment of 900 million rubles in Mining Crypto

According to the local media RBC, the cryptocurrency mining facility under construction will be worth 900 million rubles. This project is supported by the Corporation for Development of the Far East and the Arctic (KRDV), a government organization whose mission is to promote investment projects in the regions of Far East and Arctic Russia.

Indeed, the mining farm will be operational in the third quarter of this year and will have an energy consumption of 100 megawatts. It will include 30,000 mining machines and will create around 100 jobs, according to the same source. It should be noted that the mining farm will be built in a priority development zone of Buryatia. This territory is known for having developed a special legal regime facilitating entrepreneurship.

It is important to note that the KRDV has announced that Bitriver, the company responsible for building the mining farm, received government support tools such as:

  • Zero taxes on land and property,
  • Insurance premiums reduced to 7.6%,
  • A reduced tax rate.

In addition, the mining farm will benefit from a 50% reduction on the electricity rate! This announcement demonstrates the willingness of the Russian government to support entrepreneurial initiatives in the field of cryptocurrency.

Bitriver-B, which creates one of the most important companies for the digital development of Buryatia has received a wide range of government support tools. These include zero taxes on land and property, insurance premiums reduced to 7.6% and a reduced tax rate.

Statement from the Director of KRDV

Russia already on good terms with cryptocurrency?

Since last year, Russia has shown increasing interest in cryptocurrencies and Blockchain technology. It was also preparing to recognize crypto mining activities through a specific law. In September 2022, the Chairman of the Parliamentary Committee on Financial Markets, Anatoly Aksakovhad indeed confirmed that the Central Bank and the Ministry of Finance had finally found a agreement on a bill. This new legislation will soon be presented to the Duma State.

Moreover, the investigation report published by the business daily Kommersant revealed that the total mining power capacity in Russia exceeded 500 megawatts by the end of 2022.

Faced with this reality and, above all, with the abundance of energy resources such as gas, oil and hydroelectric dams, Bitcoin mining is very profitable in regions with such opportunities for electricity production. The crypto community is eagerly awaiting this new law, which would be another step towards recognizing Bitcoin and cryptocurrencies as legitimate financial assets.