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Police authorities in Kyrgyzstan have confiscated thousands of cryptocurrency mining machines as part of a new offensive against illegal cryptocurrency mining in the country. Investigators also identified industrial companies that supply electricity to bitcoin farms.
Security service leads operation against illegal mining in Kyrgyzstan
The State Committee for National Security (GKNB), Kyrgyzstan’s organized crime agency, recently discovered and raided a number of facilities mining cryptocurrency outside the law. The special operation was carried out in the capital Bishkek and in the oblast of Chuy, the northernmost region of the country.
During the offensive against illegal mining activities, law enforcement seized around 2,000 cryptocurrency mining units, GKNB reported, as quoted by Sputnik Kyrgyzstan. The preliminary procedure is underway, added the press service of the agency.
The cryptocurrency mining process is inflicting “colossal damage” on the country’s power grid, the state committee said. GKNB has also discovered several large industrial companies supplying electrical power to illegal crypto farms.
Most of the looted addresses are in the capital of the Central Asian Republic, Bishkek. Some of the mining devices were seized from industrial facilities located in the Bishkek Free Economic Zone. Police are in the process of tracking down all those involved in the bribery scheme.
Bishkek government takes action to regulate crypto industry
In August 2020, the Ministry of Economy introduced a bill regulating the taxation of bitcoin mining in Kyrgyzstan. According to the proposal, a 15% tax will be imposed on the cost of electricity consumed to strike digital coins. The law requires mining companies to apply for a registration necessary to operate legally in the country.
In January of this year, the National Bank of the Kyrgyz Republic announced that it was preparing two bills to regulate local cryptocurrency exchanges. According to the bank, the bills introduce a set of measures aimed at reducing the risks of money laundering and terrorist financing. Trading platforms were required to report their activities to the government.
Cryptocurrencies have seen increasing popularity in Kyrgyzstan over the past year. Decentralized digital currency is seen 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 anti-government protests.
What do you think of the government’s offensive against crypto mining farms in Kyrgyzstan? Let us know in the comments section below.
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