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Russian Businessman Purchases Power Plants For Crypto Mining

China has long been a cryptocurrency mining fortress because of low power tariffs and a lot of big mining operations have set up shop around power stations.

Looks like this theme is getting over to Russia, where the first sample of power stations being bought by investors to house cryptocurrency mining operations is being reported.

In accordance with RT, Russian businessman Aleksey Kolesnik has almost confirmed buying 2 power stations for cryptocurrency extraction operations in the future – referring to a report from local newspaper Kommersant.

The two power stations based in Perm and Udmurtia, regions approximately 1,200 km East of Moscow, will be reconstructed into a data center and extraction operation.

Kolesnik paid about $3 million for the 2 power stations – although its indefinite if and when the plans to start mining cryptocurrency will go ahead.

The plausibility of the project and its future is in the hands of the Russian government, which has made progression in its views on cryptocurrencies in the country.

Late last week, local media reported that Russia’s finance ministry had officially drafted a bill that would legitimate the trade of cryptocurrencies on regulated exchanges in the country.

This also happens after President V. Putin proposed the creation of an international cryptocurrency that is intended to be adopted by BRICS and EEU members.

It is anticipated that Russia will legitimate and control cryptocurrency trade in the country by July 2018, while extraction and trading crypto will also be taxed.

Expect more eminent moves

Russia absolutely hasn’t wasted time moving to found official regulation of the use of cryptocurrency in the country over the past year.

When mine-workers and traders have gone about their cheerful way, the government has played catch-up over the past year, notably after Bitcoin’s impetuous rise in price.

The last month has not been kind on the cryptocurrency market, with wild impermanence an everyday life. However, that has not stopped the voluminous flow of users looking for a possibility to trade cryptocurrency.

Having giving clarity in the direction it wants to take in December, cryptocurrency traders and miners in Russia know what to expect – with a ban ruled out fully.

It wouldn’t be unexpected to see more large mining operations pop up in the country as inquiry for cryptocurrency grows – which inevitably puts more voltage on the network.