Two Russian power stations will be transformed into cryptocurrency mining operations, according to local media reports.
China has long been a cryptocurrency mining stronghold due to low power tariffs and many large mining operations have set up shop nearby power stations.
It seems this theme is spilling over to Russia, where the first instance of power stations being bought by investors to house cryptocurrency mining operations is being reported.
According to RT, Russian businessman Aleksey Kolesnik has all but confirmed buying two power stations for cryptocurrency mining operations in the future – citing a report from local newspaper Kommersant.
The two power plants based in Perm and Udmurtia, regions roughly 1,200 km East of Moscow, will be refurbished into a data center and mining operation.
Kolesnik paid around $3 mln for the two power stations – although its uncertain if and when the plans to start mining cryptocurrency will go ahead.
The credibility of the project and its future is in the hands of the Russian government, which has made headway in its outlook on cryptocurrencies in the country.
Late last week, local media reported that Russia’s finance ministry had officially drafted a bill that would legalize the trade of cryptocurrencies on regulated exchanges in the country.
This also comes after President Vladimir Putin proposed the creation of a multinational cryptocurrency that is intended to be adopted by BRICS and EEU members.
It is expected that Russia will legalize and regulate cryptocurrency trade in the country by July 2018, while mining and trading crypto will also be taxed.
Expect more preeminent moves
Russia certainly hasn’t wasted time moving to establish formal regulation of the use of cryptocurrency in the country over the past year.
While miners and traders have gone about their merry way, the government has played catch-up over the past 12 months, especially after Bitcoin’s meteoric rise in value.
The past month has not been kind on the cryptocurrency market, with wild volatility an everyday occurrence. However, that has not stopped the massive influx of users looking 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 completely.
It wouldn’t be surprising to see more big mining operations pop up in the country as demand for cryptocurrency grows – which inevitably puts more strain on the network.