Russia Subsidizes Crypto Mining Facility in Siberia: 30,000 Mining Machines to Open

• Russian government is investing in a crypto mining center in Siberia
• The center will possess 30,000 crypto mining machines and hire 100 workers
• Tax incentives are provided for those who want to invest in crypto mining

Russian Government Subsidizes Crypto Mining Facility in Siberia

The crypto mining industry has faced moratoriums in some parts of the United States and Canada in recent months. However, Russia is providing tax incentives for those who want to invest in crypto mining by subsidizing a new $12 million crypto mining center opening this year in east Siberia.

BitRiver’s New Facility

The facility will be owned and run by BitRiver, Russia’s largest colocation services supplier. It will possess 30,000 mining machines, hire 100 workers and consume 100 megawatts from the power grid.

Tax Incentives

The government support comes as part of a special economic zone incentivized to attract national and foreign investments. The state-owned Corporation for the Development of the Far East announced the launch of the crypto mining center located in Buryatia — a republic within the Russian Federation. Those investing here will benefit from zero land and property taxes to a lowered income tax rate as well as lower electricity prices cut by half for the miners operating here.

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Russia’s Gazprombank recommends slow CBDC rollout fearing loss of income due to potential disruption caused by digital currencies entering mainstream commerce.

Conclusion

Overall, with its direct support through tax incentives and lowered energy costs, it appears that Russia is taking steps towards welcoming cryptocurrency miners into its country while also recognizing its potential economic benefits.