Home>News>Economy>Cryptocurrency>Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices

Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices

Cryptocurrency
28.05.2021
209
Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices

Law enforcement authorities in Kyrgyzstan have confiscated thousands of crypto mining machines as part of a new offensive against illegal cryptocurrency mining in the country. Investigators have also identified industrial enterprises that have been supplying the bitcoin farms with electricity.

Security Service Conducts Operation Against Illegal Mining in Kyrgyzstan

The State Committee for National Security (GKNB), Kyrgyzstan’s organized crime-fighting agency, has recently found and raided a number of facilities mining cryptocurrency outside the law. The special operation has been conducted in the capital Bishkek and Chuy Oblast, the country’s northernmost region.

During the offensive against illegal mining activities, law enforcement agents have seized around 2,000 cryptocurrency mining units, GKNB announced, quoted by Sputnik Kyrgyzstan. Pretrial proceedings are underway, the agency’s press service added.

Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices

The process of cryptocurrency mining inflicts “colossal damage” on the country’s electricity network, the state committee emphasized. GKNB has also uncovered several large industrial enterprises supplying electrical power to illegal crypto farms.

Most of the raided addresses are in the capital city of the Central Asian republic, Bishkek. Some of the mining devices have been seized from industrial facilities located in the Bishkek Free Economic Zone. The police are currently working to establish all individuals that have been involved in the corruption scheme.

Government in Bishkek Takes Steps to Regulate Crypto Industry

In August 2020, the Ministry of Economics put forward a bill regulating the taxation of bitcoin mining in Kyrgyzstan. According to the proposal, a 15% tax will be imposed on the cost of the electricity consumed to mint digital coins. The legislation obliges mining companies to apply for a registration which is needed to operate legally in the country.

Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices

In January of this year, the National Bank of the Kyrgyz Republic announced it’s preparing two draft laws to regulate local cryptocurrency exchanges. According to the bank, the bills are introducing an array of measures aimed at reducing the risks of money laundering and financing of terrorism. The trading platforms were required to report their activities to the government.

Cryptocurrencies have enjoyed growing popularity in Kyrgyzstan over the past year. Decentralized digital money is viewed as a new investment opportunity and also as an alternative solution for cross-border payments. Last October, the country’s central bank suspended SWIFT transfers and banking activities amid raging anti-government protests.

What are your thoughts on the government’s offensive against crypto mining farms in Kyrgyzstan? Let us know in the comments section below.

Author:bitcoin

Актуальные новости

10.10.2021, 14:18
262
US treasury secretary Yellen: global minimum corporate tax will pass
23.08.2021, 13:25
349
A Tale of Two Hacks: Poly Hacker Bows Out, Liquid to Restore Operations
17.10.2021, 08:00
231
President of Mexico Denies Having Interest in Adopting Bitcoin as Legal Tender
05.10.2021, 12:48
396
Do Surging Energy Prices Make Exxon Mobil Stock A Long-Term Buy?
11.10.2021, 00:39
192
‘We are staying!’: Poles demonstrate in support of EU membership
23.08.2021, 20:00
330
‘Who is New Zealand?’: The moment Tampa refugees were told some had a new home | Abbas Nazari
16.05.2021, 20:00
190
Elon Musk Doubles Down on Dogecoin, Tweets About Ideal Improvements
24.09.2021, 20:00
261
Kentucky Sends Cease and Desist Order to Crypto Lending Platform Celsius Over Interest-Bearing Accounts
btc
$ 16975.49
+0.07%
eth
$ 1273.5
-0.04%
busd
$ 1.001
+0.02%
xrp
$ 0.391025
+0.18%
ltc
$ 76.59
+0.07%