Republic of Abkhazia Witnesses Increase In Illegal Crypto Mining

The Republic of Abkhazia is witnessing an increase in crypto mining activities despite crypto-related activities being illegal since 2018.

Customs have reported that over the past six months, mining hardware worth over $589,000 has crossed the border.


Unlawful Crypto Mining is Booming within the Republic of Abkhazia | | Bitcoin (BTC) | https://t.co/I0XTopw1A7 — Bitcointe 💎 (@bitcointe) July 25, 2020

According to Nuzhnaya Gazeta, importing crypto mining rigs however, remains legally permissible.

Importers are usually required to pay taxes equal to 1% of the hardware’s worth and a VAT of 10%.

Considered by several countries as an “autonomous republic” of Georgia, they state that they have earned over $84,100 in taxes just from crypto mining rig imports since 2020.

Guram Inapshba, the head of the national customs committee, says imports are allowed in order to “hunt” for illegal crypto miners.

Inapshba clarifies that no foreigners are involved inside the country in terms of running or funding crypto mining activities, although he says that there are “several dozen citizens” of Abkhazia involved in the imports.

In December 2018, the government of Abkhazia banned all crypto mining activities due to a lack of capacity in the country’s electrical system while noting the need to provide “priority power supply to the population of Abkhazia.”

Recently, the Bolivarian National Guard of Puerto Ordaz, Venezuela, seized 315 Bitcoin (BTC) mining machines manufactured by Bitmain.

The owners of the mining rigs were told that they did not possess the necessary permits to own and operate the machines.

Source: Cointelegraph | Image: Unsplash

#BitcoinMining #CryptoMining #mining #Bitcoin #Abkhazia #btc #cryptocurrency

0 comments