Regional Government Announces Opening of Large Crypto Mining Farm in Russia

Favorable conditions have been created on the territory of the Leningrad Region for the creation of mining farms. There is enough capacity in the region, so electricity prices are relatively low. This is among the undeniable advantages of the region, along with the availability of engineering sites and qualified personnel.

The opening ceremony.

The farm is built by a company called Cryptouniverse on the site of the former Soviet fertilizer-producing laboratory, which stood unoccupied for 20 years, according to the Japan Times. The company explained that "The first buildings of the center put into operation occupy an area of 4,000 square meters and contain more than 3,000 pieces of equipment for the production of bitcoins and litecoins. Any private investors can place their equipment on the territory of the mining center or rent its computing power."

Alexei Korolyov, the center's co-founder, was quoted by the news outlet saying that "this is the largest and so far the only farm in Russia that offers the 'full cycle' — not just producing cryptocurrency but also offering services to those who do the mining."

Another Area for Mining Farms in Leningrad Region

In September last year, the Governor of the Leningrad Region invited crypto miners to the Sosnovy Bor area near St. Petersburg to create industrial-scale mining farms at the old Leningrad nuclear power plant.

According to Pravda.ru publication, "plans to create a mining farm based on the former nuclear power plant in Sosnovy Bor are still in place."

The Governor said during the St. Petersburg International Economic Forum in May that the authorities had meetings with a group of Russian investors to discuss plans for "the production of equipment for mining farms and the production of cryptocurrency." Without disclosing further details, he indicated that "the real timing of the launch of the mining farm" is 2021.

In Monday's announcement, the Governor of the Leningrad Region also discussed the regulatory framework for cryptocurrencies in Russia. "At the federal level, legislation is being drafted that will allow the regulation of the use of cryptocurrencies," he described, emphasizing that "the State Duma of the Russian Federation is considering bills on digital financial assets."

Kommersant reported that the Pushkin Leningrad State University, the Russian Association of Cryptocurrency and Blockchain, and the Leningrad Chamber of Commerce and Industry "are preparing a concept that regulates the use of digital technologies" in the region. It includes the mechanism of implementing blockchain technology in businesses, crowdfunding projects, [and] provisions of tax incentives for "digital entrepreneurs," the publication conveyed. The document will be submitted to the regional Legislative Assembly and is expected to be submitted to the federal regulators in the fall.