The Russian government will subsidise a cryptocurrency mining facility

In one of its most isolated regions, Russia has agreed to support a massive crypto-mining plant.

Russia has authorised a massive, subsidised crypto-mining facility in Buryatia, a region in the country’s Far East.

It will open in the first half of 2023, contain 30,000 mining equipment, employ 100 individuals, and use 100 megawatts of electricity from the grid. One hundred megawatts can power tens of thousands of houses.

As part of the incentives, the mining hub will pay no land or property taxes and will have a reduced income tax rate. The electrical bills of the mining industry will be slashed in half.

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. After linking the resident’s facility to the unified national electric grid, the power rate will be decreased by around fifty percent. This is one of the most significant assistance measures for an energy-intensive firm.”

The Corporation for the Development of the Far East, a state-owned organisation founded in 2012 to promote economic growth in Russia’s Far Eastern Federal District, will construct the mining hub. Some of Russia’s poorest regions and republics get assistance from the Corporation, including investment initiatives in transportation, tourism, energy, natural resources, and innovation.

Before the Ukraine conflict, the Russian authorities viewed cryptography with scepticism. Since the invasion of their neighbour and the following sanctions, the crypto industry’s ready-made alternative to the old banking system seems preferable.

In September of 2022, the Russian Federation decided to legalize crypto for international transactions. The central bank issued a statement at the time stating, “It is crucial to note that we are not discussing the legality of cryptocurrencies as a method of payment in our nation.”

Deputy finance minister Alexei Moiseev allegedly said that the Bank of Russia and the finance ministry anticipate legalising crypto-based international payments in the near future.

Additionally, the government intends to launch its own national cryptocurrency exchange. However, the nation still has a generally unfavourable view of technology.

Also Read: U.S. Officials Are Pressuring Banks To Sever Links With Crypto Businesses