Crypto mining operations in Siberia are approved by the Russian government.
The development of a cryptocurrency mining operation in Siberia later this year is expected to receive direct financial support from the Russian government, which made the announcement on February 8th.
The facility with 30,000 crypto-mining equipment will be managed and run by The Bitriver-B company, according to Russian media. According to the Russian-language RBC, it will run on 100 megawatts drawn from the local power infrastructure of the area and employ 100 personnel.
East Siberia's $12 million cryptocurrency mining facility is slated to open, with the support of the regional administration. The new center is being built in Buryatia, a republic in East Siberia, and will soon be finished.
In the community of Mukhorshibir, According to RBC, it is apparently permitted to operate with no property or land taxes, 7.6% lower insurance costs, and a lower income tax rate. The facility's electricity bill will be cut in half once it is connected to the unified national power system, according to officials.
The state-owned Corporation for the Development of the Far East is the government agency in charge of the project.
The report comes as Russia has announced the completion of its pilot CBDC program, which it started testing last year, and as sanctions against Russia continue to be imposed as a result of its invasion of Ukraine.
Additionally, it follows a shaky 2022 for the whole crypto mining sector, especially in the face of outright bans in Canada and the US, which left the sector damaged going into 2023.
2022 was a very difficult year for those in the mining industry, especially after BlockFi, the bankrupt cryptocurrency lending platform, recently disclosed that they were forced to take a two-thirds loss on their $21 million loan to Bitcoin mining company BitFarm. Add to that the rising cost of energy brought on by the Russia/Ukraine war.
But Bitcoin recently reached a new all-time high in hashrate, one of the best measures of strength for the Bitcoin mining network, like a phoenix rising from the ashes.
It appears that the mining business has a clear way forward in Russia now that the Russian government is doubling down on creating a $12 million USD mining facility deep within the Siberian tundra, while remaining outlawed in nations like China.
Article Credit: Cryptoslate.com
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