Business & Finance

Russia Inaugurated Yet Another Crypto Mining Farm

Russia has instantiated the largest cryptocurrency mining farm in its Leningrad region. The press service of the governor and the government of the Leningrad region released this announcement. Mining farms have been popping up all over Russia, as the continent strives to keep up with the pace of the rest of the technologically revolutionized countries.

This newly instantiated humongous mining facility can produce up to 20MW of energy. The number of mining equipments that makes it the largest crypto mining farm is 3,000 rigs. All these machines have been housed in an area of about 4,000 square meters. The farm is constructed on the territory of the industrial park ‘Levoberezhny’ in Kirishi.

The expenses to build this farm amounted to 500 million rubles (Equivalent to US $7.3 million) which were collected from investors.

Dmitry Yalov, The deputy governor of the Leningrad region made the following statement at the inauguration of the crypto mining center,

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 company responsible for building the farm is Cryptouniverse, who has been selling mining equipment and they also do large scale mining hardware distribution and build equipment for mining farms across Europe. The company built the farm on the area that was previously inhabited by a Russian fertilizer-producing laboratory, but it has been abandoned for 20 years. The mining farms can farm two types of cryptocurrencies, Bitcoin and Litecoin. However, the mining rigs can also be loaned out to other individuals who seek to utilize the computational power of the high power machinery. Alexei Korolyov who is the mining center’s co-founder told,

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.

This isn’t the sole project of building involving crypto mining rigs. Last year in September, a bunch of cryptominers went to Sosnovy Bor area near St. Petersburg to create industrial scale mining farms on the invitation of the Leningrad’s governor. According to the governor, all these crypto enthusiasts and investors came together in order to make plans for creating mining farms and production of cryptocurrencies. These mining farms will be launched in 2021.

The government has also been active about making plans for drawing up the regulatory framework for the sale and purchase of cryptocurrencies. This framework is necessary in order to contain the threats that cryptocurrencies pose. If regulated, the use of cryptocurrency for nefarious purposes can be decreased to minimum. The governor told,

At the federal level, legislation is being drafted that will allow the regulation of the use of cryptocurrencies the State Duma of the Russian Federation is considering bills on digital financial assets.

Russians have been eagerly partaking in the development and deployment of blockchain and blockchain based applications as well. The Pushkin Leningrad State University, the Russian Association of Cryptocurrency and Blockchain, and the Leningrad Chamber of Commerce and Industry are aggressively putting efforts in order to regulate the use of blockchain technology. This involves mechanism of employing blockchain technology in businesses, crowdfunding projects and supplying tax incentives to digital entrepreneurs.

With crypto mining farms consuming an excessive amount of power, the need of hour is that they should be created in places where there is an abundance of renewable resources. That being said, regulating the use of cryptocurrencies should be emphasized as well so that a balance is kept in place. Considering all of the recent developments that have taken place in Russia, it is safe to say that it realizes the advantages of cryptocurrencies and the catastrophic events that could take place in the absence of a regulatory framework.

 

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Habibah Shahid

A Computer Science student but a writer at heart. Habibah writes about Cryptocurrencies and the underlying technology, Blockchain, with the perspective of a Computer Scientist. Email: habibah@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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