New Bitcluster Report Shows Russia Can Gain $1 Billion Extra in Taxes From Crypto Mining Activities
Russia could be able to gather $1 billion more in taxes from cryptocurrency activities. This is according to a report released by the mining solutions provider Bitcluster. In 2018, Russia had an electrical surplus of 20 GW. That means that it could power 14.8 million Antminer S9i ASIC devices.
If there is a company that starts mining with these miners, Russia could receive $70 billion rubles (around $1 billion USD) just from VAT.
This report shows that each Antminer S9i consumes 1,350 kWt/h of electricity. At the moment, there are 740,000 units of this model operational consuming 1 GW. At the moment, the price per kilowatt-hour in Russia is $0.03 and the VAT revenue related to these machines would be close to $4.4 million per month.
Furthermore, the researchers believe that there are several investors in the country ready to build a crypto valley for Russian miners. The estimated cost of this industrial park for miners would be $15 million.
The mining valley could be located close to hydroelectric power plants that would provide clean energy for the mining activities. Back in 2018, the Russian Ministry of Finance proposed to create special regulatory regimes in different territories around the country to benefit crypto companies.
Additionally, there was a proposal to allow companies from certain industries to use cryptocurrencies in specific regions in the country. The proposal was made by Anatoly Aksakov, the chairman of the Financial Markets Committee of the Duma.
Several rumors spread during the last weeks related to Russia purchasing Bitcoin (BTC) to reduce its dependency from the US dollar after the sanctions imposed by Western countries. However, this news turned out to be fake. Thus, Russia is not probably going to purchase Bitcoin anytime in the next few weeks as suggested by a Russian economist.
The country has also been trying to support rules for crypto mining activities. The intention is to regulate the cryptocurrency space without killing innovation but protecting investors. Russia has been a country selected by several miners to start their businesses due to the low temperatures the country has and the cheap electricity costs.