Russia Ramps Up Crypto Mining: 15 New Data Centers Planned Amid Shifting Policies

The Russian government has revealed plans to build 15 data centers in the Komi Republic. This signals its latest move toward embracing cryptocurrency.

According to the announcement made by Russian media outlet TASS last Friday, the data centers will be built in the city of Mikun in the Ust-Vymsky District and in the village of Sindor in the Knyazhpogostsky District. 

The Russian government will invest around 2.5 billion rubles for this initiative. According to Vladimir Uyba, head of the Komi Republic, lands have already been allocated for the construction of these facilities, according to the announcement. 

In a statement shared via a Telegram message, Uyba emphasized the region’s commitment to advance its IT industry and digital technologies. “Currently, it is planned to build two data centers: in the city of Mikun, Ust-Vymsky District, and in the village of Sindor, Knyazhpogostsky District. The investment volume for these facilities will amount to 2.5 billion rubles. Land plots have already been allocated,” he shared. 

Furthermore, he said the development in the Komi Republic will help generate tax revenues for the region. 

Russia’s Changing Crypto Stance

The move comes as Russia’s approach to cryptocurrency evolves. Russian President Vladimir Putin signed a law in August legalizing cryptocurrency mining in Russia. The authorities signed the law as a means to counter Western-led sanctions. 

Additionally, Russian lawmakers approved the use of cryptocurrencies for international trade.

However, despite these advancements, Russia remains undecided about the creation and adoption of cryptocurrency exchanges. 

Anatoly Aksakov, the head of the State Duma Committee on Financial Markets, previously revealed that current regulations for exchanges are limited to Russia’s experimental legal regime for digital innovations in the financial market.

Historically, Russia has always adopted an anti-crypto stance. As recently as two years ago, TASS reported that the Central Bank of Russia rejected the use of private digital currencies for settlements. However, the Bank of Russia then approved the development of digital financial assets. 

In a related move, the Russian government has explored allocating surplus electricity capacity to legal miners at regulated rates. It has also approved legislation that legalizes cryptocurrency mining and allows for the trial use of cryptocurrencies in cross-border payments.

While Russia is gradually taking steps toward becoming more open to cryptocurrency, the lack of definitive approvals to use it for domestic payments highlights an ongoing cautious approach.

Read More

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.