The cryptocurrency regulations have not yet been adopted in Russia, but a number of words and actions suggest that Moscow can make the most of the “phenomenon” to protect national interests. Ideas and proposals to attract businesses and capital in areas of strategic importance across the country have been disseminated by officials at local and federal level. President Putin himself claims that the delay in development is unacceptable because it involves the “risk of losing sovereignty”

03/05/2018

Any mining company can get support from the Kaliningrad authorities if it invests only 1 million rubles, about 17 thousand dollars. Miners wishing to set up their plants in the westernmost region of Russia would receive preferential treatment in the Special Economic Zone. Tax rebates on profits and assets and reduced benefits are one of the incentives used by the inhabitants of the zone, claims Alexandr Shenderyuk-Zhidkov.

Kaliningrad offers tax breaks to attract Bitcoiners. In addition, local authorities plan to minimize the costs of connecting mining companies to the power grid and other relevant infrastructures, said Zhidkov during the “Crypto Environment” conference in Moscow. The forum was sponsored by the Vnesheconombank, a Russian development institution. Recently, the mayor of the Kaliningrad District, Anton Alihanov, said that the region could become “one big mining farm”

Kaliningrad is located almost in the heart of Western Europe and is separated from the rest of Russia. The city and the region have always had strategic importance for Moscow because they became part of the Soviet Union at the end of World War II.

Bitcoins to attract Russians to the High North

Mining companies were also invited to settle in the far north of Russia. There are many places in the country that can be exceptionally inhospitable, especially during the long Russian winter. Low temperatures, however, are conducive to the extraction of cryptocurrencies. The equipment used to process cryptocurrency transactions requires cooling. Murmansk is one of those places that offers not only a cold climate, but also very cheap electricity.

Life and work in the polar circle has never been popular with most Russians. In Soviet times, workers were encouraged to move there with higher wages and better living standards. In modern Russia Bitcoins can replace rubles as the main incentive for companies and people moving to the north.

Last month, the Russian deputy minister of energy Vyacheslav Kravchenko advised crypto companies to build mining companies on the Kola Peninsula in the Murmansk Oblast, where they could find a surplus of power. Kravchenko also noted the positive attitude of his department to mining in Siberia, where the rates for electricity are very low.