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A Russian company has unveiled a new fund to finance crypto mining operations in the country.
The new mutual investment fund will be available to qualified investors who can invest a minimum of 300,000 rubles (about $4,000), and the money will be used to acquire crypto mining equipment and pay for electricity and other operating costs, Russian business outlet Kommersant reported. is near informed of,
The fund is expected to raise around 500 million roubles, the report said.
The Kommersant report stressed that the potentially high return on investment in the crypto mining sector is accompanied by high risk. It also noted that there is a lack of regulation of the space, and that the Russian central bank is generally perceived to be hostile towards crypto.
As recently as this week, Russia’s central bank warned that crypto legalization could Weakening the country’s financial system,
According to Kommersant, the launch of the fund is still subject to regulatory approval in Russia. However, industry observers believe there is a good chance the fund could be approved, and the central bank has “eased its attitude” towards crypto mining, the report said.
The Russian central bank previously banned the inclusion of digital assets in mutual funds, but some mutual funds investing in companies working on blockchain technology have been approved.
Mining is becoming more popular in Russia
Alexander Baryshnikov, head of development at Russian mining firm BitRiver, told Kommersant that there has been an “explosive increase in interest” in crypto mining in Russia, including from major banks and investment companies.
He revealed that his firm is in the final stages of negotiating major investment deals in several crypto mining projects on an “industrial” scale in the energy-rich country.
The interest in crypto mining in Russia is believed to have come from the lack of other investment opportunities in the country.
Russia has been pointed out as a natural location for crypto mining operations, given its cold climate and abundant low-cost energy. Additionally, some have suggested that Russia should embrace crypto as Western sanctions cut into the country’s traditional industry.
In December last year, it was reported that Russia was on the verge of legalizing the crypto mining industry. officially legalize mining, However, in January this year the Russian Ministry of Finance said that progress on the proposed The mining bill was “stalled”.