Mining is a crucial part of the cryptocurrency ecosystem throughout the world. Though there are a select group of countries that support mining, the government in Transnistria has decided to expand their regulations to allow a place for miners to come into their economy.
The new structure locally will create regulations that specifically adhere to the needs of miners, promoting more business locally.
Earlier in the year, new legislation was adopted by the Pridnestrovian Moldavian Republic that permitted the act of crypto mining, while offering incentives for miners to participate.
Mining farms were deemed legal, and a free economic zone was created to ensure that they have unrestricted access to the electrical grid in Transnistria. This access is incredibly crucial to keeping energy costs low, considering the amount required for validating transactions on the blockchain.
With the new law, mining equipment can be imported without paying tariffs on them, and the income that miners earn from this work comes without the requirement of paying taxes. However, that’s not where the Tiraspol government stops. Based on a statement by the prime minister, the laws hope to evolve in a way that facilities that use up to 100 MW of electricity can be involves as well.
Aleksandr Martynov said in an interview, “We adopted a fairly liberal law that stimulates mining activities in Transnistria. We also isolated them from our tax system.”
Presently, the prime minister has ensured that there’s no control by local authorities over the production of cryptocurrency, and they have no claim over the revenue involved either. Essentially, the government is prioritizing the ability to sell plenty of electricity to the mining farms at a substantially lower price than other nations can.
Presently, the Modlavskaya GRES is the largest producer of electricity in Russia. This thermal power station uses Russian natural gas with a 2,520 MW installed capacity. The miners would come into the economy to use the excess capacity, which would then generate revenue for the station.
With more revenue, the local government can increase their budget. The projected income is already included in the PMR budget, considering that it should be significant.