Recently, the crypto mining industry has received moratoriums in some parts of the USA and Canada. But scenarios seem to be changing with Russia providing tax incentives for those willing to invest in crypto mining. With the Government‘s direct support, the new $12 Million crypto mining center will be opened in East Siberia.
Reportedly, this crypto mining facility will open in the first half of 2023 and will be run by BitRiver which is the largest crypto mining collocation services supplier in Russia. Furthermore, it will possess 30,000 crypto-mining machines which would require 100 Megawatts from the power grid and approximately 100 workers.
The local authority named, “Corporation for the Development of the Far East” shared the news about the launch of a crypto mining center in Buryatia, which is a republic in East Siberia besides being a part of the Russian Federation. Alongside, the Corporation serves as the subsidiary of the Ministry of Development of the Far East and Arctic. As a result, it specializes in providing support to investment projects in the region.
The support of the Russian government towards Siberia can be explained by considering the legal status of Buryatia, popularly known as a “territory of advanced development.” Thus, it is a special economic zone (SEZ) that is incentivized for attracting both national and foreign investments.
Post the outbreak of war in Ukraine and the financial sanctions it followed, the Russian government has revisited its anti–crypto positioning, particularly on mining. As a result, this new mining center will enjoy a wide range of incentives including zero land and property taxes and lowered income tax rate. Moreover, the electricity prices will also be cut down b half for mining operators.