The Russian crypto association is working on two projects to create mining pools offering better conditions to the local mining companies. The industry has seen robust growth with 70,000 enterprises currently operating in the field. Miners are taking advantage of the cheap electrical energy produced in Russia. Many companies believe it’s time to legalize all activities and set universal standards in the sector.
Also read: Ukrainians Advised to Pay 19.5% Tax on Crypto Incomes
Russian Pools to Offer Alternative to Local Miners
The Russian Association of Cryptoindustry and Blockchain, the organization representing the interests of crypto businesses, has been involved in a number of initiatives promoting the sector and highlighting its importance for the economy. RACIB has recently decided to actively support the development of crypto mining in the country by participating in two projects to create Russian mining pools. One of the main tasks is to bring back to Russia some of the money that now flows to foreign companies, the association’s director Arseniy Shcheltsin told Prime.
According to RACIB, more than 400,000 people are employed in the sector with 70,000 enterprises operating hundreds of thousands of mining rigs. Some of those are industrial-size farms, however, many ordinary Russians are also mining cryptocurrency in their homes and garages. Shcheltsin and his colleagues believe the number of amateur miners is gradually decreasing while professional players in the market are growing and hiring more experts, from electricians and cooling engineers, to IT specialists and program developers.
Most of these facilities are currently working with Western and Asian mining pools whose operators control the distribution of the revenues. Using pools based abroad also increases the dependency on foreign counterparts, jurisdictions, and tax regimes, RACIB warns explaining its determination to back the creation of Russian mining pools.
The first two are already under development, with RACIB participating in a joint project with the company Crypto Universe and in the national mining pool project called “Mine Russia”. Each of the pools has a planned capacity to support 3,000 mining units and will be mining a number of leading cryptocurrencies. RACIB’s role will also include collecting and sharing statistical and analytical data with the participating firms.
Conditions for Crypto Mining Improving in Russia
The Russian crypto association is announcing the two ambitious projects at a moment when the prospects for the crypto mining industry in the country are improving. Processing crypto transactions is a power hungry computing and cheap energy is always welcome. Russia has some of the lowest electricity rates in the world and they’ve decreased further in the past months – from 5-7 rubles per kilowatt at the end of last year to 4-5 rubles now, and in some regions as little as 2.5 rubles (less than $0.04 USD).
Russian authorities are preparing to adopt the long-awaited crypto regulations. The revamped legislation will be presented for public discussions in October, before lawmakers in the State Duma accept it for the second reading and final approval. Three bills aimed at regulating different aspects of the crypto space were voted on first reading this spring but their adoption was postponed for the fall session of the lower house of parliament to give deputies enough time to synchronize the drafts. Most Russian officials and regulators favor crypto mining but are less eager to accept the legalization of cryptocurrencies and allow their circulation in the country.
Arseniy Shcheltsin is confident that the demand for mining pools in Russia will increase. He also points out that Russian pools will offer more favorable conditions to local miners in comparison with foreign pools, which often take up to 20 percent of the hashing power of the participants. RACIB’s president also promises there will be no hidden fees for the transfer of assets and the connecting of mining equipment to the network.
The Russian Association of Cryptoindustry and Blockchain plans to facilitate the “full legalization” of the mining business. This month RACIB will present a proposal to introduce a certification regime for crypto miners. The documents and standards are currently being prepared in cooperation with representatives of the industry. Mining enterprises will have to meet more than 30 requirements before they are certified. Russian mining projects at a total investment cost of 5 billion rubles (~$71 million) are planned for realization by the end the year.
What are your expectations for the future of cryptocurrency mining in Russia? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock, RACIB.
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