No cryptocurrency transactions in Armenia until sector is officially regulated – Armenian Blockchain Forum's clarification over upcoming 50MW mining farm
YEREVAN, APRIL 7, ARMENPRESS. A cryptocurrency mining center will be opened near the Hrazdan TPP in Armenia. The first block will house a mining farm and various service-related hardware solutions, while the second block will house all companies of the zone.
ARMENPRESS talked with Irina Golovanova, PR manager of Armenian Blockchain Forum (ABF) and ECOS over the subject.
At first, please tell us where in particular is the mining center planned to be opened ?
The mining center [will be opened] in the territory adjacent to the Hrazdan TPP. The first block is a site near the Hrazdan power station, it will house a mining farm and various services related to hardware solutions. The second block is a 4-5-storey building, it will house all companies of the zone: the ABF itself (which deals with education, forums, etc.), the FEZ organizer, R & D laboratories, the accelerator as an organization, coworking and service companies that will help start-ups.
As we were earlier informed, the crypto-mining farm will be based on a tax-free zone. What kind of privileges will the new zone offer to the mining center?
When placing the mining equipment on the territory of the FEZ, the value added tax will not be included in the cost of the equipment. At the same time, the company must comply with the direction of activity stated in the FEZ. For example, the company has come to develop an application for blocking, and it will receive benefits, but if it is instead engaged in mining - no privileges.
Who are the investors going to be? How much investments are expected?
The list of investors at the moment is not disclosed. The state provides non-financial support. Direct investment in business will be at least $ 30 million annually from private investors.
ECOS-M signed an agreement with Hrazdan Thermal Power Plant on supplying the mining center with power, how will this process be technically implemented?
Technically, this is a connection to Hrazdan Thermal Power Plant and receiving a capacity of 50 MW. There is also an agreement on a potential increase in capacity to 200 MW.
The cryptocurrency sector isn’t regulated in Armenia yet, it is interesting to know how will the new companies operate under such conditions? Is there any international practice on how it’s possible?
The created free economic zone is called to become a point of attraction of technological start-ups from all over the world and provide comfortable conditions for their development. Within the framework of the new ecosystem, an identification center will also operate, the purpose of which will be to ensure compliance of the participants of the FEZ with the requirements of international organizations.
No transactions in crypto-currencies will be performed until the issue of a crypto-currency in Armenia is settled.
Interview by Ani Nazaryan
ARMENPRESS will present the official approach of the government over the regulations of the crypto-currency market and the launch of the FEZ.
English –translator/editor: Stepan Kocharyan