Russia Supports Cryptocurrency Mining Operations In Siberia

The Russian government approved crypto mining. (Photo; Doc. Maiacrypto)

JAKARTA - The Russian government provides financial support for cryptocurrency mining operations to be launched in Eastern Siberia later this year. Bitriver-B companies will manage and operate facilities with 30,000 crypto mining machines.

The company will employ 100 workers and use 100 megawatts of electricity from local networks in the region. The $12 million crypto mining center will operate in Buryatia, a republic in Eastern Siberia.

Located in the village of Mukhorshibir, this facility is in the development stage and is almost complete. The local government provides protection and incentives in the form of reducing land and property taxes, insurance premiums to 7.6 percent, and income tax rates.

Once connected to an integrated national power grid, the electricity rate will decrease by about half. This is a major step for the Russian government to increase investment and growth in the crypto sector. With the direct support of the government, it is hoped that crypto mining operations in Eastern Siberia can run smoothly and provide positive results for the country's economy.

According to an RBC report, a Russian media outlet is monitoring the development of the economy and business. The $12 million crypto mining project is led by a state-owned company for far Eastern Development and will be managed by Bitriver-B. According to an RBC report, the facility will employ 100 workers and have a capacity of 100 megawatts, taken from local power grids in the region.

This news comes as the crypto mining industry as a whole is under pressure, such as a direct moratorium implemented in Canada and the United States. BlockFi, a crypto loan platform, also recently announced a huge loss from their loan to BitFarm's Bitcoin mining company. However, Bitcoin mining network recently showed signs of power by reaching its highest point in terms of a hash rate.

With the support of the Russian government for this new crypto mining facility, it appears that the mining industry has a clear path in Russia, although it is still banned in some countries such as China. The project also took place while Russia was facing sanctions and war with Ukraine, as well as completing a CBDC pilot program.