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Russian Businessman Purchases Two Power Plants to Mine Cryptocurrency

© Sputnik / Evgeny Biyatov / Go to the mediabankBitcoin mining farm at the 3logic stand at the Russian Blockchain Week 2017 conference in Moscow
Bitcoin mining farm at the 3logic stand at the Russian Blockchain Week 2017 conference in Moscow - Sputnik International
Russian authorities have been elaborating legislation on cryptocurrency, with Russian Central Bank's (CBR) Deputy Governor Olga Skorobogatova announcing that authorities would present draft legislation on taxation, control and accounting related to virtual currencies as a digital good.

Russian businessman Aleksey Kolesnikov has bought two power plants in Russia's Primorsky Krai and Udmurtia to create a data-center and a mining plant, Russia's Kommersant newspaper said Friday.

"We're planning to create a data-center in view of the Russian legislation, saying that all information should be stored in Russia," Kolesnikov said, adding that "we're thinking about the creation of a mining plant as well, but only after the corresponding regulations are adopted in Russia."

Though the effectiveness of the two power plants is not very high, existing Russian legislation, as well as low energy prices, make them promising as a basis for the creation of data-centers.

Russia is currently elaborating legislation which will alter the regulation of the cryptocurrency market, with a particular focus on initial coin offerings (ICOs.) Chairman of the State Duma's financial markets committee Anatoly Aksakov said earlier that he expected the draft law to be completed by next March.

READ MORE: Russia's Leading Bank Opens Blockchain Lab Amid Cryptocurrency Fever

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Russia has already made several attempts in recent years to create cryptocurrencies with government involvement – for instance, the national research institute Innovative Technologies developed the Bitcoin analog RuCoin.

It has already been added to some global trade platforms and its developers have attracted over $200,000 in investment. The currency doesn't provide users with the same level of anonymity as other cryptocurrencies, as authorities want to ensure that this new, centrally-issued currency doesn’t become a tool for crime.

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