Russian government gives green light to crypto mining operation in Siberia

The Russian government announced on February 8 that it will begin direct financial support for a cryptocurrency mining operation due to launch in Siberia later this year.

According to Russian media, Bitriver-B plans to manage and operate a facility with 30,000 cryptocurrency mining machines. It employs 100 workers and, according to Russian, operates on 100 megawatts obtained from the region’s local power grid. red blood cell.

A $12 million cryptocurrency mining center has opened in Eastern Siberia with direct support from the local government. The new center, located in the Republic of Buryatia in Eastern Siberia, is currently under construction and is nearing completion.

Located in the village of Mukhorshivir, it is reportedly allowed to operate with zero tax on land and property, reduced insurance premiums to 7.6% and reduced income tax rates, according to RBC. After connecting the facilities to a unified national grid, electricity bills will be cut by about half, officials said.

The government leading the project is the State Enterprise of Far East Development.

The news comes as sanctions continue to rain down on Russia following its invasion of Ukraine and Russia announced the completion of a pilot CBDC program it began testing last year.

Also, after the crypto mining industry lost massive momentum in 2022, especially amid complete moratoriums in Canada and the United States. America —The industry looked shabby heading into 2023.

Add to that a recent disclosure by BlockFi, a bankrupt cryptocurrency lending platform. 2/3 loss 2022 has been a very difficult year for those in the mining business, with a $21 million loan to bitcoin mining company BitFarm, plus rising energy costs due to the war between Russia and Ukraine.

But like a phoenix rising from the ashes, Bitcoin recently hit an all-time high in hashrate, one of the best indicators of the strength of the Bitcoin mining network.

Now, with the Russian government pushing to build a $12 million mining facility deep in the Siberian tundra, Russia’s mining industry appears to be on a clear path, but countries such as China is still prohibited.

Leave a Reply

Your email address will not be published. Required fields are marked *