Siberian crypto mining is backed by the Russian government

State-owned Corporation for the Development of the Far East has revealed plans to open a cryptocurrency mining facility in Buryatia, an East Siberian republic and the constituent republic of the Russian Federation, according to a report by the local Russian media outlet RBC on February 8.

The new complex will employ a hundred people, require 100 megawatts of electricity, and hold thirty thousand mining equipment. The facility will be owned and operated by Trover, the leading supplier of cryptocurrency mining co-location services in Russia.

The mining hub will get a number of benefits, such as a reduced income tax rate and an exemption from paying land and property taxes. Reduced power expenses will save the mining firm half a million dollars annually.

The government’s backing stems from Buryatia’s legal standing as a region of advanced development, a special economic zone with incentives to attract national and international investments. 

Buryatia KRDV director Dmitry Khameruev said: Land and property taxes are eliminated entirely, while insurance premiums are lowered to 7.6 percent and the top individual tax rate is lowered to 25 percent. When a home or business is wired into the national grid, the price of power drops by nearly half. To put it another way, “this is one of the most crucial forms of assistance for an organization that relies heavily on energy.”

In July 2022, state-owned gas company Gazprom Neft partnered with the blockchain platform BitRiver. The former would provide BitRiver with power derived from a petroleum gas with which it is coupled. With the help of the oil industry, BitRiver created a digital infrastructure. 

Also Read: Bitcoin Addresses With Balances Exceed All-Time High

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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