[2018-01-20] Russia Ready for Migrant Bitcoin Miners Influx

[FollowSynergy]

Despite some indecisiveness about cryptocurrencies on the part of centralized power, Russia has been quietly preparing for a wave of migrant crypto miners from East and West. It’s been said that the country has got what it takes to invite them. A third of the Soviet era power producing capacity is idling, after energy hungry industries were closed and scrapped in the 90’s. Experts, home and abroad, members of the local crypto community, all agree – Russia is ready to welcome bitcoin miners from China and Europe. That’s if Moscow says “yes”… or at least doesn’t say “no”.      

Russians Mean Business

“Hello, Invite Chinese miners to Russia!! Excess electricity capacity – 20 MW… 3 rubles/kWh (0.05USD; 0.32RMB)”. This is just one of many ads you can find in bitcoin forums these days. With electric installation to plug in the rigs – ready, internet cables stretched in a 5,000 m2 air-cooled building – check, fire alarm and CCTV cameras – installed, and 24/7 tech support – available, Russians mean business. The country is ready and even bragging about what it can offer to miners chased beyond the Great Wall, but not only, “Do you cooperate with European colleagues?” a question reads when you scroll down. “I’ll send the contract…”, the answer follows shortly after.

Dozens of applications to mine bitcoin in Russia have been received already from companies and individuals from China and the EU, as news.Bitcoin.com reported. The Russian Cryptocurrency and Blockchain Association has invited colleagues from China and Slovakia to help increase Russia’s appeal to relocating miners. Spanning 11 time zones, filthy rich with natural resources and cheap energy, the largest country has a lot to offer. It has been estimated that the mining industry can pour trillions of rubles into federal and regional budgets. And Russian experts say authorities must think about creating the right conditions to accommodate the market.

Full article - https://news.bitcoin.com/russia-ready-for-migrant-bitcoin-miners-influx/

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1714642061

[tee-rex]

Despite some indecisiveness about cryptocurrencies on the part of centralized power, Russia has been quietly preparing for a wave of migrant crypto miners from East and West. It’s been said that the country has got what it takes to invite them. A third of the Soviet era power producing capacity is idling, after energy hungry industries were closed and scrapped in the 90’s. Experts, home and abroad, members of the local crypto community, all agree – Russia is ready to welcome bitcoin miners from China and Europe. That’s if Moscow says “yes”… or at least doesn’t say “no”.     

Russians Mean Business

“Hello, Invite Chinese miners to Russia!! Excess electricity capacity – 20 MW… 3 rubles/kWh (0.05USD; 0.32RMB)”. This is just one of many ads you can find in bitcoin forums these days. With electric installation to plug in the rigs – ready, internet cables stretched in a 5,000 m2 air-cooled building – check, fire alarm and CCTV cameras – installed, and 24/7 tech support – available, Russians mean business. The country is ready and even bragging about what it can offer to miners chased beyond the Great Wall, but not only, “Do you cooperate with European colleagues?” a question reads when you scroll down. “I’ll send the contract…”, the answer follows shortly after.

Dozens of applications to mine bitcoin in Russia have been received already from companies and individuals from China and the EU, as news.Bitcoin.com reported. The Russian Cryptocurrency and Blockchain Association has invited colleagues from China and Slovakia to help increase Russia’s appeal to relocating miners. Spanning 11 time zones, filthy rich with natural resources and cheap energy, the largest country has a lot to offer. It has been estimated that the mining industry can pour trillions of rubles into federal and regional budgets. And Russian experts say authorities must think about creating the right conditions to accommodate the market.

Full article - https://news.bitcoin.com/russia-ready-for-migrant-bitcoin-miners-influx/

As good as it sounds, let's not forget that Russia has been very controversial about bitcoin all these years. Some officials are proposing criminal prosecution for mere possession of cryptocoins, while others are openly bragging about having these coins in their pockets. For the time being, the Russian government has allowed civil-service employees not to declare their cryptoholdings. At the same time, they are going to criminalize unlicensed mining whatever licensed mining might mean.

[Taki]

As I remember, Russia promised to take it's final decision about crypto currencies this February. So, there is still no any official announcement, but they already inviting miners on their territory. probably it is a positive sign, they must be planning to follow Belarus' experience in this point and make mining of crypto as their main line. I am still waiting for the decision about taxation of digital profit, what kind it is going to be?

[darkangel11]

It seems like all those things they're telling you at school is irrelevant. Choose your career path blah blah blah. None of them expected their future career path will be a cryptocurrency miner. 
That said, it's a great example how the open market regulates itself. When a country closes down on a certain activity others will see it as an opportunity and invite people in. It was like that when China closed down its exchanges and the history repeats itself with miners.

[Kemarit]

LOL. I'm still very skeptics about Russia's really accepting bitcoin or cryptocurrency for that matter. I took everything coming from them with a grain of salt. The main reason is that they totally contradicts each other's statement.  . And I don't think that Putin will accepts anything that he can't control. I can't count many times that the Russian says thing that they will quickly overturn the next day. We all know that Russian can contribute greatly to the ecosystem, like Vitalik Buterin's ETH, but damn, I'm literally laughing every time they open their mouth. The news about bitcoin mining farm has been going on for several months now and I can't find any that will substantiate they claim that they are crypto friendly. Just saying.  

[jseverson]

Wait, who exactly are these advertisers? As far as I can tell from the article, their government hasn't taken an official stance, but at least one person did acknowledge that Russia could handle mining migration.

Either way, I don't know if this is good news or not. It's just basically leaving one totalitarian regime for another totalitarian regime. Whatever official stance they may take can be reversed in a hurry.

[Samarkand]

LOL. I'm still very skeptics about Russia's really accepting bitcoin or cryptocurrency for that matter. ...

I´m under the impression that Russia has clarified their stance on
cryptocurrencies. They will issue a CryptoRuble - a cryptocurrency
that is non-mineable and pegged to the value of the existing Ruble - and
that will be the only legal cryptocurrency.

On the one hand it is great that Russia is going forward with those plans,
but on the other hand it is incredible stupid to think that a state-issued
cryptocurrency will usurp Bitcoin. The Russian people will still use Bitcoin
even if the state will make it illegal. As we all know a prohibition like this
is not really enforceable, which is one of the beautiful things about
decentralized currencies.

[CryptoBry]

Russia just like China can be difficult to spell forward or backward yet I am still positive that eventually the government will allow the entrance of the cryptocurrency movement into the country including the recognition of Bitcoin either as currency or even as an asset subject to the tax laws and other statutes of the land. There is a possibility that eventually the government will pass a special law for this industry including that of Bitcoin mining. Right now, there are many Russians who are involved with cryptocurrency projects and just looking at the rooster of new ICO introductions many of the people behind are Russians. These people should talk to the government and ask it to allow cryptocurrency since many are getting benefited.

[tee-rex]

As I remember, Russia promised to take it's final decision about crypto currencies this February. So, there is still no any official announcement, but they already inviting miners on their territory. probably it is a positive sign, they must be planning to follow Belarus' experience in this point and make mining of crypto as their main line. I am still waiting for the decision about taxation of digital profit, what kind it is going to be?

They have officially postponed their final verdict till June, though they didn't specify the June of which year exactly. As I got it, the Russians are mostly hoping that crypto will disappear on its own and thus they won't have to make up their mind in any definitive way. Maybe they are waiting for the IMF to step forward and bring some regulations to the table. This is the best choice if they don't want to back down on their commitments later, whatever they might be.

Basically, they are sitting on the fence.