Kyrgyzstan Confiscates 2,000 Crypto Mining Machines
The fraud-fighting agency organized by Kyrgyzstan recently uncovered and raided multiple crypto mining devices operating illegally. The security agency launched the operation in the northernmost region of the country: Chuy Oblast and Bishkek.
During the operation to reveal illegal crypto mining dealings, the law enforcers seize about 2,000 mining units. Moreover, the GKNB announced proceeding with the pre-trial for now.
Keep in mind that this is after several countries had to suspend crypto mining due to power usage concerns. For instance, last week, China’s Inner Mongolia banned crypto activities due to the increased power consumption by mining activities.
The Kyrgyzstan state committee stressed the massive damages that crypto mining imposes on the nation’s electricity grid. During the crackdown, GKNB revealed multiple industrial firms supplying illegal crypto miners with electricity.
Bishkek had several crypto mining activities that do not adhere to the country’s laws. The agents seized some of the mining equipment from industrial amenities in the Bishkek Economic Zone. At the moment, the police aim to uncover all parties associated with the illegal scheme.
Kyrgyzstan Steps to Control the Crypto Market
The Economics Ministry in Kyrgyzstan announced a bill to regulate BTC mining taxation in 2020 August. The bill proposed a tax (15%) on the price of power used to mine virtual coins. The legislation urges mining firms to register for them to operate without challenges in the country.
In 2021 January, the Kyrgyzstan National Bank declared the preparation of 2 draft regulations to control local crypto exchanges. The bank announced that it aimed to establish measures that will reduce financial crime and money laundering risks. The rules wanted all trading platforms to report their crypto doings to the administration.
Similar to other regions, Kyrgyzstan has had increased crypto activities over the last year. The citizen now views digital currency as an investment opportunity. Digital coins can also help facilitate cross-border transactions. In October last year, the nation’s central bank banned banking activities and SWIFT transactions due to the furious anti-government demonstrations.
Do you think that the Kyrgyzstan government is too offensive when it comes to mining activities? Or is the operation to uncover illegal miners good for the country? Feel free to comment below.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
