A Russian Company known as the Kriptoyunivers Center opened the nation’s largest cryptocurrency mining unit on Monday, August 20, 2018. According to the South China Morning Post, the mining farm is currently located in a former Soviet fertilizer-producing laboratory. The 44,000 square foot Kriptoyunivers center mines Bitcoins and Litecoins.
The center emerged as a result of Russian Authorities who are keen to regulate the growing and booming cryptocurrency industry.
Cryptocurrency Mining Farm To Offer All Services
“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,” said Alexei Korolyov, the co-founder of the Kriptoyunivers center.
The cryptocurrency farm is located in Kirshi, which is 180km South East from Saint Petersburg. It was built on the land that was once previously a Soviet fertilizer laboratory. The laboratory was unoccupied for approximately 20 years. The investment for the site cost the company 500 million Roubles ($7.4 million).
Russian Authorities Eager To Regulate Cryptocurrency Sector
Russia is in the process of regulating cryptocurrencies. Throughout 2017 and 2018, the Russian Government has had a reasonably mixed and uncertain stance when it comes to cryptocurrencies. They initially had legislation to ban Bitcoin and other cryptocurrencies outright, only to then retract those statements.
The Japan Times, however, reported that Russian authorities are keen to regulate cryptocurrencies. The Russian Parliament is currently discussing a potential law which authorizes the production of cryptocurrencies but forbids the exchange of cryptocurrencies for Roubles.
Russia Ranks Third in List of Cryptocurrency-Producing Nations Since 2015
According to a study published by Ernst and Young in 2017, Russia ranked third, behind China and the United States regarding being a cryptocurrency-producing country since 2015. Russia is a reasonably favorable place to mine cryptocurrencies.
Mining for Bitcoin or any cryptocurrency requires a lot of energy and therefore produces a lot of excess heat. Most mining operations are consequently in colder climates which reduces the cost of cooling equipment. Russia has excess power, colder weather, and vast territory which is exceptionally beneficial for large-scale cryptocurrency mining farms.