Investors in Russia are Buying Powerplants to Mine Cryptocurrency

According to a report in the Russian paper Kommersant, two power plants in  Russia have been purchased by private investors who plan to use them in order to generate power to mine cryptocurrencies.

Reporting the sale to be the first of its kind in the country, the paper also said that both the power plants are located in the Perm Region on the Western slopes of Middle Ural Mountains. The newly purchased infrastructure would be used as a data centre as well as a centre for mining digital currencies. The power plants were sold for around 160 million Russian rubles, which translates to around 3 million US dollars.

The power stations were purchased by Russian businessman Aleksey Kolesnik, who indirectly confirmed about the transfer. He said that cryptocurrency mining would only be possible after the Russian Duma (Parliament) adopts relevant legislation allowing the same.

Currently, Russia has no legislation on cryptocurrencies. The government is still studying about cryptocurrencies and is deciding on proper measures to effectively regulate them in the country. The Deputy Finance Minister, Aleksey Moiseev, recently suggested that a ban on mining digital currencies would be put in place, while trading of digital currencies would be kept legal in a future regulation.

Russia has a split opinion on cryptocurrencies, with some calling digital currencies as money surrogates and raising concern on their issuance. Others have welcomed cryptocurrencies as a way out against sanctions imposed by Western countries and have even suggested building cities in Russia dedicated to mining cryptocurrencies.

The Russian government has plans to create legislations concerning use of digital currencies in the country as well as regulating ICOs and other cryptocurrency instruments. It is expected to come in force by July of 2018.

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